Opportunities Remain During Quiet Session

Published 27/11/2015, 08:41
EUR/USD
-
GBP/USD
-
USDIDX
-

Price action in the major currency markets over the past 24 hours has been extremely limited due to the Thanksgiving holiday in the US and the lack of any important news or reports from Europe. As such we have little in terms of fresh news and developments to discuss this morning as the market remains in the same state we left it yesterday.

Today we should see increased volume and participation compared to yesterday as traders will return to their desks but given that it’s a Friday and there’s not a lot of reports scheduled for release or other important developments taking place today we shouldn’t expect too much. However this is not to mean that there will be no opportunities to trade, especially the Pound as the release of the GDP levels will spark some volatility.

The main bias remains in favour of the US Dollar as the Euro is facing yet another round of easing pretty soon, even though recent reports from Europe painted a better looking picture and allowed the Single currency to correct a bit and trade above the 1.0600 level during the past couple of days. At the same time, the Pound remains weak against the US currency as well, recent comments from BoE policymakers have limited its outlook and even though the Cable has found some temporary support around the 1.5100 level the next short-term target comes around the 1.5000 area.

Taking a look at the recent price action, the Euro remained flat yesterday throughout the day trading slightly above the 1.0600 area. The lack of trading volume the past 2 days has allowed the Euro to build a base above the 1.0600 level but that should not make us forget that the sentiment remains bearish. Any corrections higher or any rallies to the upside should be treated as opportunities to sell at a higher price since the bias remains negative and the next target to the downside lies around the 1.0520 area.

The Cable traded sideways for the past couple of days edging either side of the 1.5100 level, it has been the lack of participation and any important news that has allowed the Pound to remain afloat against the Dollar after the hefty drop from the 1.5300 area. The outlook for the Pound remains negative as well, the BoE will be the next bank after the Fed to raise hike but for now they’re concerned about the low inflation. Today’s GDP report should spark some volatility but don’t expect too much as it rarely misses analysts’ expectations.

"Disclaimer: The information provided by InvestingBetter.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. InvestingBetter.com are merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite.

InvestingBetter.com and/or its owners will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on InvestingBetter.com. InvestingBetter.com does not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought."

Original post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.