Interesting developments for the US…
There has been quite a few interesting developments in the markets from yesterday
It was announced that a former lawyer and former campaign manager were both found guilty of several charges brought against them. This has placed the market in a very cautious tone as the market awaits further news or a reaction from Trump.
Consequently, the USD has remained pressured from yesterday following comments from Pres. Trump that he does not like the Federal Reserve raising interest rates by too much.
The Australian Dollar has been somewhat mixed due to political challenges in their government.
CAD / MXN
The CAD and MXN also had a mixed day on good news about a possible preliminary NAFTA agreement between Mexico and the US, however the market faded the move as Canada later responded by saying they have not received any such notifications.
Due to the more positive risk tone in the market the NZD has been busy with a relief rally from late last week following an immense sell-off following their previous monetary policy decision and statement.
The relief rally has been fueled today by NZD retail sales which came out much better than expected.
Important Scheduled Economic events during today’s session to watch:
12:30 (GMT) | CAD Retails Sales MM – After last week’s beat on CPI number the market will be focused on Retail sales to give further clues about the BOC’s next monetary policy decision.
14:30 (GMT) | Crude Oil Inventories – This will be important for any CAD or NOK trades that are currently running so keep this in mind.
18:00 (GMT) | FOMC Meeting Minutes – Tonight we will have the release of the FOMC meeting minutes, the market is not expecting fireworks from this, but if you are in any USD trades watch this one carefully.
All Day | US-China Trade Talks – US and China trade representatives will be conducting low level trade talks today and tomorrow. Any positive or negative developments could have a big impact on the market.
Our pair selection for today:
We have chosen the NZDUSD as a potential pair we will be watching closely today to look for trading opportunities.
NZDUSD – H4
NZDUSD – M15
Further comments on our pair selection:
The reason behind our pair selections for today is quite simple…
NZD has remained supported following an improvement in the overall risk tone of the market as well as a much anticipated relief rally. Today this was further boosted by positive Retail Sales out of NZD.
USD has remained pressured following Trump’s comments about the interest rates over the weekend, as well as the recent political challenges faced by former Trump lawyer and campaign manager.
This is a VERY SHORT TERM trade idea, which means it is only valid as long as the above mentioned catalysts stays in play. This trade idea can change in an instant if the market returns their focus to the overall fundamental bias for the two relevant currency pairs.
Also, keep the US-China trade talks in focus as this can send this pair upwards or downwards on any big developments on the trade war front.
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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 and the information herein is NOT an enticement, signal or recommendation to buy or sell any financial instrument(s). All of the information in this post should be considered as general market commentary and is intended for educational purposes only. The information supplied in this post should never be used as trading or financial advice.
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