Trade Recommendations for current Session
There is nothing to really trade today as overnight newsflow remained light, however I will be paying very close attention to the upcoming ADP and FOMC Statement later in the New York session.Here is a brief catch up on two currencies I’m looking at trading in the longer term and why.
The GBP is still a very bullish currency that is being driven by speculation of a interest rate hike from the Bank of England by the end of 2014, I’m looking for a nice sell off on GBP/USD in order to start buying it back, a good level of support is around 1.6900 with a long-term target of 1.7500 in the coming months.
I’m still viewing the NZD as a bullish currency in the longer-term, this is because New Zealand has one of the most attractive investment yields and the NZD is a very attractive carry trade, especially against currencies with very low interest rates.
From this point on I am looking to buy NZD back every time it dips to tradable levels, and especially against weaker currencies with a low or zero interest rate.
Pre Session events
The USD-index remains near its 6-month high posted during yesterday session as participants remain tentative ahead of the aforementioned risk events out of the US later today. Elsewhere,USD/JPY held above the 102.00 handle, after poor Japanese Industrial Production data which showed shipments falling for a 5th straight month, similar to the last time Japan entered recession.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
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