How Do We Make Money Today?
The USD took a back seat as trade war fears eased and news that North & South Korea were going to hold a summit, spurred on equity markets.
The ‘Risk-On’ profile saw the commodity currencies AUD, NZD & CAD rally.
The CAD in particular had a good day as Oil bounced & it appears the outcome to the NAFTA discussions may not be so bad for Canada.
This gives us a great lead into today’s trading as we have the important Bank of Canada meeting. The CAD has clear upward bias (USDCAD downward bias) & that’s a good backdrop for a trading opportunity.
The BOC is expected to leave rates unchanged & with NAFTA still unresolved that should be enough to keep their Statement pretty neutral.
Besides the Canadian dollar the AUD & EUR will once again be in the spotlight with GDP expected for both currencies.
The Aussie has been the odd currency as domestic data is crap but offshore impacts to the USD have been sending it all over the shop. One thing is clear today’s momentum is up, so that would be the best trading direction for now.
Euro has also had a good 24 hours and now its broken 1.2350-60 it’s set for a crack at 1.2500. Solid GDP numbers may be just the thing it needs to get it there.
Keep in mind the geopolitical influences at the moment are changing momentum a lot quicker than normal, so if you do have positions running make sure you have ‘trailing stops’ in place otherwise you’ll leave a lot of cash on the table.
Trading Pairs to Focus On
Follow the economic data and the technicals.
AUDUSD, EURUSD & 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!