Read the Daily Market Report from Dave Evans, Professional Trader
Dollar rallies after Fed split
Morning Report: 08.30 London• This morning, the US dollar is on the rise after the release of the minutes from the last Federal Reserve meeting which indicated a split in issue of Quantitative Easing. The minutes raise questions over just how big the Fed’s third round of quantitative easing will be. As this may now be less than initially expected, the dollar index has risen, pushing the main dollar pairs lower. Gold is feeling the pressure, falling by over 1% this morning.
• The strong dollar is also helping to further weaken the Japanese yen, with the USD/JPY continuing its remarkable rally since the start of December.
Coming up today: • We’ve a busy day ahead of us today, starting with UK services PMI and net lending figures at 09.30. European flash CPI estimate figures follow at 10.00.
• From 13.30, we have the main event of the month – US Non Farm Employment change with a gain of 150k expected, with the unemployment rate expected to remain unchanged. Canadian employment data is released at the same time.
• From 15.00, we have ISM non manufacturing PMI and factory orders. Bet Idea:
• Japanese officials look like they’ve finally got their wish, with the yen weakening against the US dollar for the fourth month in a row.
• While the long term trend might still be higher, it does seem that the USD/JPY has moved too far too quickly.
• The weekly chart above shows how the USD/JPY has stretched above its parabolic my more than it has done since January 2012. The last time the stretch reached these levels, a short term pull back ensued.
Morning Report: 08.30 London• This morning, the US dollar is on the rise after the release of the minutes from the last Federal Reserve meeting which indicated a split in issue of Quantitative Easing. The minutes raise questions over just how big the Fed’s third round of quantitative easing will be. As this may now be less than initially expected, the dollar index has risen, pushing the main dollar pairs lower. Gold is feeling the pressure, falling by over 1% this morning.
Click here to view full-sized image
Click here to view full-sized image
Click here to view full-sized image
• The strong dollar is also helping to further weaken the Japanese yen, with the USD/JPY continuing its remarkable rally since the start of December.
Click here to view full-sized image
Click here to view full-sized image
Click here to view full-sized image
Coming up today:
• We’ve
a busy day ahead of us today, starting with UK services PMI and net lending figures at 09.30. European flash CPI estimate figures follow at 10.00.
• From 13.30, we have the main event of the month – US Non Farm Employment change with a gain of 150k expected, with the unemployment rate expected to remain unchanged. Canadian employment data is released at the same time.
• From 15.00, we have ISM non manufacturing PMI and factory orders.
Bet Idea:
• Japanese officials look like they’ve finally got their wish, with the yen weakening against the US dollar for the fourth month in a row.
•
While the long term trend might still be higher, it does seem that the USD/JPY has moved too far too quickly.
Click here to view full-sized image
• The weekly chart above shows how the USD/JPY has stretched above its parabolic my more than it has done since January 2012. The last time the stretch reached these levels, a short term pull back ensued.
A good way to play this could be a LOWER trade predicting that the USD/JPY closes below 86.00 in 14 days time for a potential ret
urn of 734%.
Click here to view full-sized image
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
Summary:
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