Daily Trade Recommendation

Trade Recommendations for current Session

With a slew of economic data being released later in today’s session and going into the rest of the week, pairs are trading with limited range with the additional risk and potential of increased volatility. This has but the market in a bit of a quandary in the run up to these key risk events.

I myself will be personally avoiding the markets until some of these key news events unfold and I have a clearer direction of what shape the market is going to take going forward into the next few weeks and months; as we have general elections in NZ, referendums in the UK and pivotal statements regarding all but three of the major currencies this week.

Due to the above there is no real safe recommendation for a trade today,looking at the markets there are undoubtedly a great deal of pips to be made,however to trade off the back of mere speculation of the data that is going to be released is shifting closer to a game of chance rather than a sustainable revenue source.

Pre Session events

The Chinese central bank has had to provide $81 billion into China’s 5 largest banks as the Chinese economy is currently strapped for cash following a slew of negative data, this will no doubt affect the AUD as their primary trading partner.

Overnight we’ve had another opinion poll released in relation to the Scottish referendum stating that those who support the “NO” vote had a minor lead but reiterating that at this stage it is still too close to call with neither party looking like they have a significant advantage.

A precursory source and notable commentator from Wall Street with inside links to the FED has been quoted in the overnight session as stating that there is the likelihood that they (the Fed) will avoid a hawkish tone at the FOMC later in today’s session.

The majority of pairs traded on tight ranges in speculation of key risk events later in today’s session, with the NZD and AUD being the most notable under performers overnight.

In relation to the ECB’s announced ABS program; sources have stated that the ECB are considering purchasing securities that do not meet the (A) credit rating required as collateral to lend to banks.Further details of the proposed ABS program will be announced at the next ECB policy statement at the start of October.