Currency

With the recent bouts of risk-off sentiment along with political woes and Brexit concerns for the UK, it’s no major surprise to see GBP/JPY under such heavy selling pressure. And, as noted in Monday’s COT report, the British pound has seen a pickup of short bets and closure of longs, whilst traders are now the […]

Tomorrow’s employment set could prove to be a volatile affair for Australian markets, as it could be seen as a proxy for how soon or how many times RBA are to cut in this cycle, depending on the unemployment rate. RBA cut rates to a historical low at their June meeting and, whilst the statement […]

Near the end of April we flagged that NZD/CAD could be on the verge of a major breakdown. Recent price action remains constructive of that view. Unsurprisingly, commodity currencies have felt the heat throughout the trade war. However, other factors have been at play to weigh on AUD, CAD and NZD with varying degrees such as […]

USD/CAD suffered its most bearish week of the year by Friday’s close, following weaker than expected earnings data within May’s NFP report. Prices appear stretched on the daily chart, so we’re hoping prices can retrace and consolidate below a resistance level before seeking a short setup. We’re targeting the February lows, which is also near […]

Weekly COT Report: As of Tuesday 4th June: Large speculators were net-long USD by $30.9 billion, -$0.36 billion from the prior week ($34.7 billion against G10 currencies JPY net-short exposure fell to a 3-month low Traders are their most bearish on GBP since mid-January GBP and JPY saw the largest volume change of -15.8k and […]

Sentiment was given a boost at the open with Trump’s announcement that US and Mexico have reached an agreement on immigration, providing another tailwind for equity markets. Over the weekend headlines poured in that US and Mexico had reached a deal with curb migration, allowing Mexico to avoid the 5% tariffs threatened by Trump. Still, […]

With headlines surrounding tariffs and Fed cuts subsiding, it allows NFP to have its monthly spotlight back. As for the dollar, earnings could prove to be the difference between bullish or bearish. As Matt Weller outlined in his NFP Preview, the Fed will be keeping a close eye on the wage component of the report […]

News that US Congress could challenge Trump’s tariffs on Mexico saw a reversal of fortunes for a bruised USD, creating a series of potential reversal patterns for some USD markets.   Late on the 31st May in the US, President Trump roiled markets by threatening a 5% tariff on all Mexican goods. Naturally this saw […]

It seems that Donald Trump’s long awaited state visit to the UK has come at the right time for the financial markets, which have stabilised during his absence from the United Sates. In fact, the Dow Jones rallied on Tuesday by more than 300 points after Monday’s tech-driven sell-off, which came following Trump’s proposed regulation […]

If you’re new to foreign exchange (forex) trading then one of the first things you need to do is to build a strategy you can use to trade. If you don’t have a strategy, you’ll just make trades at random, which is a good way to lose all your money fast. Your strategy should include […]