Today's Highlights
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US Dollar strengthened by forecast confounding data
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ANZAC Day leaves markets quiet
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No major data today
Current Market Overview
To all our readers in Australia and New Zealand, I hope you have had and continue to have a fab ANZAC day. That event meant the markets were quite quiet overnight as far as the UK was concerned.
Surprisingly strong consumer confidence and new home sales data from the US gave the US Dollar a boost yesterday. It kept GBPUSD below $1.40 and pushed the EURUSD rate down below $1.22. There is a dearth of data of any sort today and nothing of interest from the US, so it is likely we will see range trading for the next 18 hours at least.
After five days of decline, Sterling had an ‘up day’, strengthening against most other currencies; the USD being the exception. As with the US, there is nothing happening on the UK data front today. So we will see some bumping along, but I doubt there will be any serious direction involved.
The lack of meaningful news in the day ahead makes this a very short report. However, I love the story of Ganesh Kumar, a shop owner in Luton, Bedfordshire who, when confronted by a couple of armed scumbags trying to rob him, decided to use his secret weapon. He keeps Chilli powder under the counter and he threw that in the faces of the robbers. They left empty handed. I salute you, Mr Kumar.
Trading foreign exchange on margin 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 invest in foreign exchange 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 foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
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