Risk-On sentiment sees JPY fall

Today’s focus turns to US Employment data

A comeback by U.S. equities helped the USD bounce against the YEN, as trade war concerns calmed somewhat after President Donald Trump’s economic adviser Larry Kudlow said the administration was in “negotiation” with China, and not engaged in a trade war.

The Risk-On sentiment also drove the AUD, NZD & CAD higher.

So the general economic fundamentals are out the window as the market basically trades the equity markets. i.e Risk on & Risk off.

So the secret from here is to “not overthink it”. Trade what’s in front of you: #TradeWithTheMarket

The US equity markets set the tone for the Risk on – Risk off sentiment so if you’re looking to get involved focus on the North American session.

Outside of that I expect traders to focus on the ‘big economic data’ as that will create real tangible momentum and override the current fickle geopolitical moves.

And that’s where the US Non-Farm Payrolls come into play on Friday. It should flush out the current fickle moves & give us something solid to trade around.

Remain patient and wait for the good opportunities to build!

Check our Next Best Trades Watchlist for full details as to which specific pairs we are focusing on.

Asian Session

There’s not a lot on offer today. Check out the Aussie Trade Balance data but it really isn’t a massive number so don’t get too carried away.

Trading will focus around the JPY and JPY crosses with direction probably coming from the Nikkei at this stage.

European Session

There’s a bunch of data coming out of Germany and the Eurozone so we may get some inspiration for a move on EUR and the Euro crosses.

The pick of the bunch is probably UK Services PMI data – this is high impacting data and can definitely shake up GBPUSD.

Plus I like the technical set up Sterling so it might be a good opportunity.

North American Session

This is where all the action is coming from at the moment. We have the weekly jobless claims but don’t get fooled this isn’t the big employment data the market is waiting for.

Trading direction is coming from the equity markets and comments from Trumps administration. So it’s a bit random.

I wouldn’t be wasting my time sitting in front of the screens all day in the hjope of seeing something. BUT if you do happen to be in front of the screens be ready to trade if something does come out.

Remember increased tariffs or a break down in talks = Risk Off (and vice versa).

Outside of that I will be waiting for more tangible data like Friday’s Non-Farm Payrolls.

Technical Set Up – What’s Happening with the Majors

Check our Daily Analysis for detailed analysis of the Major currency pairs.

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!


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