How Do We Make Money Today?
We had another huge build up to the US data but it turned out to be a fizzer as the US numbers came in generally below expectations.
That took the pressure off the equity & US Treasuries markets and saw the USD dribble lower.
USDYEN appears to be the most active USD currency pair slowly dropping from 108.00 down to 106.00 over the course of this week.
So with the equity markets rallying the USD is dribbling lower as the Risk-On sentiment shines through.
I still think the USD is massively oversold in so far as the fundamentals are concerned and it’s sure to turn around, but when, I’m just not sure.
So for now we #Trade With The Market – and that means sell USD.
Most of the majors are balanced against big round number levels: USDYEN 106.00, EURUSD 1.2500, GBPUSD 1.4100, NZD 0.7400
We could see each of these have a decent run to the topside anytime today so it may be a good idea to set up some stop entries above these levels, to get into the trade as they break these major levels.
Major focus will on GBP as we have UK Retail Sales today.
Sterling has had a huge run the past few weeks but it’s far from over and a move to 1.4500 is not out of the question.
Tune in to the UK data & if it’s strong we should see it move ‘freely’ to the topside.
Trading Pairs to Focus On
All the majors are still play today, but the major focus will be Sterling and the crosses.
GBPUSD, GBPJPY, GBPCAD, EURGBP, GBPAUD
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!