Trade Recommendations for current Session
There is little to really trade today as price action has been relatively subdued as the overnight session traded on relatively tight ranges across the board as the market anticipates a plethora of pivotal news releases later in the week.The main news event to watch out for today is commentary from Governor Poloz (BoC), following his statement there may be the potential for a USDCAD trade, bear in mind however when looking at this pair however that Poloz has stated previously that even if there was a slew of positive data regarding their economy, there would still be room for improvement before they considered hiking rates. Couple this with Yellens tendency to give dovish statements; the likelihood is that there won’t be much range on the pair. However if either the fed or BoC deviate from anticipated rhetoric there is the possibility of some marginal price action and opportunity for us to make some pips.
The market’s attention today focuses on the German ZEW Survey, UK CPI figures (although this is expected to, antitypical of CPI figures have little correlation on the GBP with the upcoming referendum vote later in the week). We also have commentary from several central banks with the BoJ and BoC making statements later in the session, there is also anticipation of an ECB statement however at this stage confirmation of the speech remains tentative. Elsewhere across the Atlantic we have US PPI figures whereby figures are forecast to remain unchanged.
So in summary there is nothing for me to recommend as a trade at this stage of the session given the market is anticipating a host of news releases throughout today’s session and going into the rest of the week, I would simply advise to keep focussed on that data as it is released and place your positions accordingly.
Pre Session events
USD has garnered excitement in the run up to the FOMC rate decision, however with the market displaying a degree of uncertainty regarding the outcome the USD returns to trade at generally unchanged price action. Elsewhere USDJPY briefly dipped below 107 only to hastily gain back those spiked losses.Further gains by the USD have been repressed in yesterdays and last night’s session as the market prepares for pivotal risk events later in the week, this has seen the USD trade relatively subdued and fell albeit briefly against the JPY, NZD, EUR and GBP.
The RBA made a statement throughout last night’s session which confirmed the markets suspicions that the RBA is trying to walk a fine line of neutrality; avoiding hawkish and overly dovish commentary,reiterating that the advisable strategy for them to continue to adopt would beto maintain a period of rate consistency.
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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