And the trade war continues…
During today’s Asian session the main drivers in the market has been an announcement by the US that they will continue with their 10% tariffs on $200bln Chinese products.
As a result equities and commodities has been lower across the board due to the risk tone in the market.
Important Scheduled Economic events during today’s session to watch:
15:00 (GMT) | The BOC has their Interest Rate decision and monetary policy statement. The market is pricing in over 95% chance for a rate hike at today’s meeting.
16:15 (GMT) | After the rate decision the BOC will have their press conference. With a rate hike priced in the main focus will be on the press conference and whether the BOC gives hints regarding their forward guidance.
Our pair selection for today:
We have chosen the AUDJPY and AUDCHF as pairs we will be watching closely today to look for trading opportunities.
NZDJPY – H4
NZDJPY – M30
Further comments on our pair selection:
This trade idea is based on the intraday weakness on the NZD and the strength of the JPY due to the Risk off sentiment in the market today.
We have already taken a short trade on this pair during early London session with risk defined above the previous H4 candle as we don’t want to be in the trade if the pair should break above that area.
There is no way of knowing how long risk sentiments would last, thus we have decided not to take a take profit on this trade and will manage the position as the risk sentiment changes.
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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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