What Happened Yesterday
The USD was having a pretty good day across the board yesterday but that was messed up by a couple of random geopolitical events.
First, Sterling briefly rallied more than a percent from its lows on Tuesday after The Daily Telegraph newspaper reported that Britain and the European Union had agreed on the Brexit divorce bill, citing unidentified sources.
The currency gave up some of its gains after a British government official cast doubt on the newspaper report, but traders said the news offered some support to the struggling currency.
Before the report, the British pound was trading as much as 0.7% down on the day at 1.3221. It had reversed all of those losses by 1800 GMT and rose as high as 1.3371 after the news in New York trading.
Then North Korea stirred the pot by firing another ballistic missile near Japan. This comes a week after U.S. President Donald Trump put North Korea back on a U.S list of countries that Washington says support terrorism. This maybe the international distraction Trump was after as the US tax reform comes back for discussion.
The main impact was on USDYEN which got the wobbly boot momentarily before it steadied itself around 111.40. We really have to wait and see if this escalates before it really impacts the currencies. The Yen is definitely the one to watch though.
The rest of the majors were pretty orderly, just drifting with the USD rally.
Today’s Fundamental Drivers
There’s not a lot to get excited about for the Asian session. But the European and North American sessions should be pretty active.
Technical Set Up – What’s Happening with the Majors
There are obvious breakdowns with the currency correlations as isolated events impact various currencies. The USD is rallying albeit small steps at this stage.
Today’s Focus – Major Currencies in Play
You need to follow the economic data releases & best technical set ups to work out where the majority of action and interest will be.
Technical Set Up: Support 1.1795 & Resistance 1.1965
Fundamental Driver: Eurozone & German & US data
Potential Strategy: The Euro is sliding down poretty easy. So for me the best trade will be weak European data or strong US data and selling through 1.1795.
Check our Next Best Trades list for full details.
Join us for the 1st of a 5 part Series on: How the Bankers trade forex
Part 1: How the bankers prepare, mind set, daily routine, focus & all the little components that make them tick.
Believe me, Hollywood has a lot to answer for!
Don’t get me wrong, the traders have a hell of a lot of fun but when the market is ‘on’ they are at full speed forward!
On this Wednesday Nov 29th US EST. (check the T4T Calendar for local times)
The webinar will go for around 30 minutes – short and to the point!
Today is the real starft to the week for me with major European and US data scheduled.
Unfortunately there are a few geopolitical issues sparking up so make sure you have tight stops on your positions as the currencies could turn around any minute on random news.
Tune up your charts & get ready to trade…..see you in the 247 Trade Zone!