Comdolls Hold Gains Against the Greenback

January 25, 2018 , Hassan Maishera , Leave a comment

Comdolls Strength

The greenback has so far performed poorly against its major contenders especially comdolls like AUD and NZD. Let’s review a quick trading recap of the week’s events so far:

Monday 22rd Jan. 2018.

At the U.S session on Monday, the USD started excellently against most of its competitors before Congress shook on its stopgap funding measure. The greenback picked up its gain later in the day. EUR/USD crashed from 1.2250 to a low of 1.2223, USD/JPY, on the other hand, went up from 110.72 to a high of 111.23, USD/CHF also surged to a high of .9640, while AUD/USD plunged to the 0.8000 mark before it surged again.

The comdolls were able to hold on to their gains for the entirety of the session as risk-taking kicked into high gear upon seeing the IMF growth upgrades. Apart from the USD, AUD also recorded gains against the JPY, with the pair of AUD/JPY going up to 88.95. NZD/USD meanwhile surged to 0.7334 while USD/CAD plunged down from 1.2462 to a low of 1.2435.

The Japanese Yen was the best-performing currency during this session. At the beginning of the session, the Yen gave back some of its earlier gains when Kuroda began to speak, but it later recovered as the bulls came back in force. The main catalyst for this was the fact that Kuroda implied that the BOJ’s next move would be to tighten monetary policy.

USD/JPY decreased by 48 pips or -0.42% to 110.51, AUD/JPY also plunged by 34 pips or -0.39% to 88.07, GBP/JPY also went down by 80 pips or -0.52% to end the session at 154.17

Tuesday 23th Jan. 2018.

The Chinese iron ore futures dropped for the second consecutive day on Tuesday as traders continue to be worried regarding major producers adding more supply to the already saturated stockpiles. The AUD performed excellently against the dollar during this session.
AUD/USD surged by 0.10% as the dollar weakens. It, however, lost some ground. The pair of AUD/JPY went down by 0.27% to trade at 87.98; AUD/NZD also crashed by 0.07% to 1.0866, and the pair of AUD/CHF also plunged by 0.17% to 0.7646.

The greenback continued to perform poorly against its major counterparts. The main catalyst for this is the pricing in on the previous session by the Asian session traders. EUR/USD was up by 19 pips or -0.16% to end the session at 1.2318; GBP/USD also went up by 42 pips or +0.30% to 1.4038; USD/JPY, on the other hand, went down by 38 pips or -0.35% to 109.92.

Wednesday 24th Jan. 2018

The greenback continued its poor performance against most of the major currencies and was the worst-performing currency of the morning London. The weakness of the currency intensified after the U.S. Treasury Secretary Steven Mnuchin commented that a weaker dollar is good for U.S. trade.
USD/JPY decreased by 43 pips or -0.39% to finish at 109.52, USD/CAD also went down by 73 pips or -0.59% to trade at 1.2337, USD/CHF similarly plunged by 38 pips or -0.40% to 0.9509

The sterling was the best performing currency during the session. The currency surged across the board after the .K.’s jobs report was released. Analysts believe that comments by the Brexit Secretary regarding getting a transition deal by March is the major catalyst for the push by the pound.
GBP/USD increased by 58 pips or +0.44% to 1.3457, GBP/JPY also went up by 67 pips or +0.44% to end the session at 154.96, and GBP/CHF surged by 58 pips or +0.43% to 1.3456

Our favorite comdoll of the day, the aussie continued its strength against the greenback and our Forex Signal Trading Team identified an opportunity to buy 0.8021. The trade easily hit all three of our targets and closed with 45 pips on our Trade Copier.