Boris Schlossberg
BK Asset Management
Market Drivers March 13, 2017
USD retreats
Cable takes out 1.2200
Nikkei 0.15% Dax 0.16%
Oil $48/bbl
Gold $1207/oz.
Europe and Asia:
JPU Tertiary Industry Index 0.0% vs. 0.2%
North America:
No Data
It’s been a typically quiet start of the week in the FX market as currency traders gear up for the critical FOMC rate decision this Wednesday, March 15. In fact that date promises to be a very volatile day across all fronts as the currency markets will not only get the FOMC rate decision but the BOJ meeting and the Australian labor data as well.
For now, the markets appear to be content to take slight profits from the dollar after last Friday’s strong NFP data. The US payroll numbers handily beat the 196K forecast coming in at 235K although the average hourly earnings rose by only 0.2% versus 0.3% eyed. Still, the US data has been almost uniformly bullish and yet the greenback has failed to make much progress.
USD/JPY once again has been rejected at the 115.00 figure which remains a cement ceiling for the pair, having failed to break out above that level more than 4 times since the start of the year. The price action on the FX market is not confirming the strong fundamental view for the dollar which should begin to worry dollar bulls, as the buck fails to respond to data and rhetoric and perhaps even rate hikes.
That’s why the FOMC meeting should be such seminal event for the market. If it fails to jumpstart the dollar rally, the correction in the greenback could be vicious despite all the good news on the economic front.
Meanwhile, today’s action will once again center on the 114.00-115.00 corridor. With no eco data on the docket, FX will take its cues from fixed income and equity markets which also remain quiet ahead of the Fed
Past performance is not indicative of future results. Trading forex carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.