How Do We Make Money Today?
As expected Tuesday was a very subdued day of trading. It appears the market is happy to wait for more directional news from the FOMC meeting minutes which are due later today.
The USD has retraced some of last week’s losses with ‘profit taking’ the main explanation. US 10 Year Treasuries have stabilised around 2.8915 whilst US equity markets still have a few jitters dropping 1% today ahead of the FOMC.
Sterling was the clear standout performer against the USD as “random” positive Brexit news hit the market. The 90 point rally from 1.3930 was attributed to a media report which said the European Parliament would call for giving Britain “privileged” single market access.
The media report may not even be true but that won’t ‘data starved’ traders from jumping on it. Brexit continues to be the worst ongoing geopolitical issue for traders since the Global financial crisis.
Today I’m going to be focusing on the Aussie & Sterling since we have two important releases scheduled.
AUD – Wage Price Index
GBP – Claimant count change, Unemployment rate & Average weekly earnings
The Aussie is an easier trade as it’s just drifting directionless at the moment. So if the data comes in variant it will have a more genuine impact, albeit limited with the FOMC Minutes later today.
Sterling will be tricky as once again Brexit news has the natural flow of Sterling out of tune. Also it appears the BOE has done nothing to halt the leak of UK data so if you see GBPUSD move 50-60 points in the hour leading up to the release you know the cats out of the bag.
The UK data is important for future rate expectations, especially the average weekly earnings. So watch it anyway as it’s ‘very high’ impacting data.
There’s a few US numbers coming out in the North American session but the major focus will be the FOMC Minutes released at the end of the day.
The markets looking for some sort of indication that they’ll move to 4 rate hikes in 2018… it’s a long shot but still a possibility.
All major pairs will be in play so get your charts up to speed and focus on the best technical set ups.
Trading Pairs to Focus On
With the FOMC Minutes scheduled for release all the majors currency pairs will be in play today.
AUDUSD, NZDUSD, USDJPY, EURUSD, GBPUSD, USDCHF, USDCAD
Check our Next Best Trades Watchlist for full details as to which specific pairs we are focusing on.
Today’s Fundamental Drivers
Plan the Trade, Trade the Plan!
The idea of our “Market Insight” is to give you some guidance into your daily preparation.
Your Daily Analysis needs to become habitual – For full guidance on our daily routine click here.
Make sure you don’t waste unnecessary time in front of the screens.
Remember you need to be fresh, confident and ready to trade and by sitting aimlessly in front of your screens you will become stale and uncertain.
The key to your sucess: Isolate the opportunities that work for you and focus on them.
Don’t worry about things that you can’t make…..chasing them will only cause problems (tiredness & irrational behaviour will take over).
Tune up your charts & get ready to trade…..see you in the 247 Trade Zone!