David Long

Promises Promises

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Forex Market News


The session highlights saw the Aussie bounce off 0.8550, which happens to be the 50% Fibonacci retracement from 2008 lows to 2011 highs. This came over the jobs data which saw some slight improvement. Is finishing the session and the week weaker as US dollar continues to strengthen on yield flows. The Yen had a minor pullback which afforded entries on the hourly chart for those looking to scale into long trades or get in having missed last weeks run.


The BOE left rates unchanged as expected and the pound sold off due to no action from Carney and that they have had some data showing softness creeping into the UK economy. Rate rise expectations are now pushed out from February to October, which funnily enough is when they expect the US to have a rate rise too.


Draghi…what can one say, he did it again. He hasn’t changed a thing but continues to promise. The market believed him when he said: “has tasked relevant euro system committees with the timely preparation of further measures to be implemented if needed.” Whoop-di-friggin-do. That is just lawyer/polie/ mubo-jumbo talk that says nothing but hints at everything. The ECB has lowered rates and have got some minor bond buying program in there. Whilst this is weakening the currency it is not doing enough to battle the stagnation. The stock market liked the promise, which I do not understand. Actions speak louder than words and the ECB is not acting.


Had more positive data out and so the stock market is slightly in the green, the greenback is still going strong and commodities have stabilised overnight from recent tumbles.


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