Dollar and Japanese Yen in Sync ?

ProForex

ProForex

Hi Guys,

Good morning! Some thoughts for this week.

We had the NFP release for the US markets on the 7th of June and had many volatile market movements. This is good for as we need movements to trade, the markets have now stabilized and seems be setting up for some smooth sailing.


Looking at few pair to take advantage of. GBPUSD, GBPJPY, NZDUSD and NZDJPY. We may be in for some trading where US Dollar and Japanese Yen could be in Syn or on the other hand British Pound and New Zealand Yen will do the talking! We will have to wait and see.


We have already had some bearish sentiments on Monday for British Pound with the Industrial and Manufacturing Production economic indicator releases showing a decline. Also the speech release by Michael Saunders from the Bank of England Monitory Policy Committee did not sound too promising for GBP with the Brexit looming around the corner.


With regards to Japanese Yen the Machinery Orders economic indicator came in higher showing a strong economy for the immediate future.


US Dollar is so far looking to be on the neutral side with the Producer Prices sidelining, however JOLTS Job Openings is showing some confidence but this is a low impact indicator.


With all this in mind we will be looking at below indicators which are yet to come out today and tomorrow. All in all we are wanting a strong sentiment for US Dollar and Japanese Yen while at the same time we would like for the New Zealand and British economies to show bearish sentiments.


Indicators to keep an eye out for near future.


US Economy
Consumer Price Index
Monthly Budget Statements
Initial and Continuing Jobless Claims


Japanese Economy
Foreign Investment in Japan Stocks


New Zealand Economy
Business NZ PMI


British Pound
Ricks Housing Price Balance



GBPUSD
Possible entry area 1.27400


GBPJPY
Possible entry area 138.200


NZDUSD
Possible entry area 0.66100


NZDJPY
Possible entry area 71.600



Video Analysis.

 
HI Pipeguy..

this is a broad topic indeed..

in short British Economy is solid.. they are not going to go belly up just because of Brexit.. life will go on after Brexit.. we might see GBP weakening in the short term... but that's good for us as we can trade this bearish sentiments on GBP.

On the other hand GBP might increase in value once they come out of the EU.. because when you are tied to an economy you are not free.. Remember what happen to Swiss Franc sometime back.. they were pegged to the EURO and once the peg was removed swiss franc's value just skyrocketed. It was sometime in 2014 where the EURCHF plummeted due to the strong CHF after the peg was removed.

Here this was the move.. it was a 4000 something pip move.. and then finally settled at 2000 pips in that month.

So yeah Brexit could be good or bad depending on how you look at it.. only the charts and fundamentals will confirm the direction.

upload_2019-6-18_6-38-48.png
 
Last edited:
ProForex said:
HI Pipeguy..

this is a broad topic indeed..

in short British Economy is solid.. they are not going to go belly up just because of Brexit.. life will go on after Brexit.. we might see GBP weakening in the short term... but that's good for us as we can trade this bearish sentiments on GBP.

On the other hand GBP might increase in value once they come out of the EU.. because when you are tied to an economy you are not free.. Remember what happen to Swiss Franc sometime back.. they were pegged to the EURO and once the peg was removed swiss franc's value just skyrocketed. It was sometime in 2014 where the EURCHF plummeted due to the strong CHF after the peg was removed.

Here this was the move.. it was a 4000 something pip move.. and then finally settled at 2000 pips in that month.

So yeah Brexit could be good or bad depending on how you look at it.. only the charts and fundamentals will confirm the direction.

View attachment 204371
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But why Pound is often sold on the news that indicate raising odds of no-deal? I guess only certain scenarios of exit are favourable for the Pound which is unlikely to be achieved even with new PM. EU deliberately takes status-quo stance driving situation to the new referendum.
 
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