Yesterday the YM E-mini index future delivered a masterclass in trading what you see, and not what you think. Trading with an opinion is one of the most destructive approaches to the market – just ask the euro bears who have been shorting the single currency for years. All to no avail.
Bank of China Ltd has denied media reports alleging it violated the nation’s capital controls by providing services that help clients convert unlimited amounts of yuan into other currencies and transfer those funds abroad.
With the FOMC meeting now consigned to history, and the currency markets now returning to ‘business as usual’ here is a round up for the Aussie, the British pound, the Canadian dollar and of course the euro
We wanted to provide a quick market update to our readers and subscribers this morning prior to the opening bell.
The GBPUSD pair continued its bullish move on Tuesday, breaking above the 1.7150 level. The action from the Tuesday session suggests that the market is in fact going to continue going higher, as we try to get to the 1.75 level.
More than 50 rules and restrictions governing foreign investment in Shanghai’s pilot free trade zone have been lifted in a bid to support its continued growth and development, a senior official said yesterday.
Like the GBP/USD, the Aussie dollar is another currency pair which is now starting to break out from a recent phase of price congestion, but for the AUD/USD, this period of sideways price action has been in place for considerably longer than Cable, with the pair having been range-bound between 0.9150 to the downside and 0.9370 to the upside for some time.
In my post of 28th May I suggested that the Canadian Dollar was approaching a key turning point as it was heavily overbought as displayed on our daily currency strength indicator on the left. Since then, the currency has indeed been selling off and for evidence of this we need to look no further than the CAD/USD June futures where this price action is clearly reflected.
Recent falls in the yuan exchange rate against the US dollar are based entirely on market forces, a senior official said on Tuesday after Premier Li Keqiang met with visiting US Treasury Secretary Jacob Lew.
Following continued bullish momentum for many of the major currency pairs, these are now approaching key technical levels, which if breached could prove to be the tipping points for some sustained and longer term trends to develop.
