Forex trader Chris Capre is not convinced the Dow’s historic bounce on Monday is going to produce a strong follow through. See his analysis of the fibonacci and ichimoku kijun line planted at almost perfectly the same levels in the six major currencies.
In the midst of all this market misery, the Japanese Yen have actually gained strength in the currency trade. Why does the Yen do so well when the rest of the world is feeling the heat?
For forex traders, knowing when a likely reversal is about to happen or not, makes it easier to stay on the right side of the market. TradingMarkets contributor Chris Capre uses the Ichimoku charts to analyze the direction of EUR/USD and GBP/USD pairs.
While some traders are looking for investments that offer a safe haven in wake of the recent turmoil markets, others see an opportunity in the currency trade.
Since manufacturing is a major sector of the economy, today’s Philly Fed Survey report will have a big influence on market behavior. Forex traders should watch closely for clues on the ISM.
Wednesday ,the BoE is set to release notes from its rate decision meeting. Forex traders will likely be watching closely for any future rate decisions or substantial influence over the direction of the GBP/USD pair.
Data from the Consumer Credit will be release on Monday. Analysts are expecting another increase to $8.5 billion dollars.
The EUR/USD pair had no real reaction to the ECB’s decision to leave rates at 4.25%, but the ISM non-manufacturing number lit a fire under the greenback, increasing its gains.
Taking advantage of falling crude oil prices, the greenback enjoyed some significantly strong gains earlier this week. But rising unemployment is opening the way for a drop against its counterpart currencies.
The British Pound has been in a free fall during the entire month of August, and just hit its lowest point vs. the U.S. Dollar in over two years.