Today's Highlights
The Dollar Flying High
Abe Meets Trump
Janet Yellen Today!
Please note: All data, figures & graphs are valid as of November 17th. All trading carries risk. Only risk capital you're prepared to lose.
Market Overview
Stock markets in Europe and the United States cooled off a bit yesterday. After more than a week of solid gains, they're taking a much needed rest. Asian indices on the other hand are all in the green this morning so it looks like we're going to have an awesome day.
The dollar has not cooled off, not even a bit. The US dollar Index yesterday reached its highest point since 2003!
The EUR/USD broke below 1.0700 and is now flirting with that level.
The AUD/USD has been in a very clear range lately that I wanted to point out.
It's been bouncing back and forth between 0.7450 and 0.7750 for the past few months. However, if the dollar starts surging forward the technicals won't necessarily matter. In fact, the opposite. If this range is broken on the downside it may trigger a few stop losses and could be cause for further selling.
Abe and Trump
Japanese Prime Minister Shinzo Abe will be the first foreign dignitary to meet President-elect Donald Trump. The media will be watching closely to see what they can read into this meeting as it could give us a huge hint about Trump's future policies in Asia, and we can use all the hints we can get at the moment.
Abe also owes Trump a huge thanks for sending the USD/JPY sky high. Something that his own administration was not able to do, not with thousands of words, nor with Trillions of yens pumped into the system. Trump was able to do it apparently by doing nothing but getting elected.
Today
The headline event will be Janet Yellen who is testifying about the economic outlook. The text of her speech will be released about 2 hours before the event so don't expect any major shocks.
Traders have already priced in a rate rise in December. The question now becomes about the pace of future hikes. Some analysts are even calling for 3 rate rises in 2017. It sounds crazy I know, but with DJ Trump in the house anything is possible.
Disclaimer: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.