Risk tone still prevalent…
The main focus during today’s Asian session has been the dovish focus on yesterday’s FOMC minutes with the dollar trading a little lower. On the other side of the pond the JPY pairs are still pressured with the overall risk tone in the market due to geopolitical and trade war rhetoric.
The pound has found some early support after comments from PM May about a possible extension of the Brexit transition period, however this will probably fade once the current negative outlook returns.
Our pair selection for today:
Given the recent GBP weakness and JPY strength we have chosen the GBPJPY as the highest probability pair to look for opportunities.
GBPJPY – M30
GBPJPY – H4
The pair has already made considerable moves during yesterday’s trading sessions. During today’s London session we have the release of the GBP Retail sales. If the releases comes out negative it could provide a catalyst to push the pair lower. If we get a positive release it could provide enough support to push the pair higher in order to get a better entry location for a potential short on the pair.
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Risk Disclaimer: Forex Trading carries a high level of risk. It is possible for traders to lose entire trading accounts if they do not know what they are doing. This post is not an enticement, signal or recommendation to buy or sell any financial instruments. All of the information in this post should only be considered as general market commentary and should never be used as trading or financial advice.
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