Forex Market – China and it’s Impact on Forex

Forex and China: October 12 -16, 2015

No matter what the pundits say or do to try to convince us that everything is settled in China; the market is just not buying it!

Every time there is some news or even a hint out of China that even remotely appears to point towards a slow down, the ripples are felt in the global markets. That’s not going to change anytime soon. Whether it is commodities or equities, China does matter, and more than you can imagine.

The Forex market feeds off this news and it appears that the new week is setting up to be much the same as we have experienced in the latter stages of September.

How the Forex Major Currency’s Look at a Glance:

EUR/USD

The renewed strength seems to be holding and the 1.1400 level is due to be tested by midweek. A breach of this big figure level will pave the way to an attack on the solid Resistance level of 1.1450. Other than a brief break of this level in mid August, a breach of this level this time will be huge and we are of the belief the Euro could be paving a path towards the 1.1800 level before year end.

USD/JPY

Like the last few months, we don’t expect any dramatic moves one way or the other. Without any major announcements or something dramatic on the horizon we see the tight range not changing much between
118.50 – 120.50.

Gbp/USD

The drip, drip lower of Cable looks likely to continue and we expect to see it hovering around the 1.5100 – 1.5200 level by the weekend. Only something dramatic will turn this around.

USD/CHF

We expect this to follow the same path as the EUR/USD with a strong attack on the 0.9500 well within range.

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