ad news out of Europe, Germany in particular, makes two potentially profitable outcomes significantly more likely. Firstly, the European Central Bank will be more flexible in its efforts to keep Greece in the Eurozone.
As the currency markets pause ahead of the monthly Non Farm Payroll release due later, I thought it would be a good time to revisit the weekly futures charts for some of the major currency pairs, and to step back a little, following a week of significant news items around the world. This helps to contextualize the NFP data, which whilst important, is simply another release in the economic calendar.
The euro settled below $1.27 on Friday morning after jumping to a seven-month high on Thursday following the European Central Bank’s policy meeting. The common currency traded at $1.2646 at 7:30 GMT after the bank did not suggest that any type of quantitative easing program was on the horizon.
Brent crude oil (BNO, quote) nearly fell below $94 on Thursday morning as investors continued to worry about growing supplies and a waning global economy.
For gold bugs, yesterday’s gold trading session was another of those which promised much but delivered little, as the precious metal attempted to rally early in the session, before the weight of selling pressure overwhelmed the beleaguered bulls once more. The pattern for gold is now becoming remorseless and repetitive, with bearish sentiment now dominating, and as each rally comes and goes, the metal moves ever lower on the longer
The euro remained below $1.32 on Tuesday morning as the European Central Bank’s (ECB) September policy meeting approached.
During a particularly line session on Monday, the EURUSD pair went nowhere.
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.
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
The EURUSD pair fell during the session on Wednesday, as we simply grind away in the current area while we await whatever it is that the European Central Bank has decided.
