There was a lot of stress at the opening bell this morning as the Dow initially dropped about 1000 points, after already having dropped 530 pips last Friday.
While the drop in the stock market created panic with stock investors, currency traders were thrilled to see increased volatility which resulted in large USD drops across the board against the Forex majors. and then recovered slightly as the stock market somewhat snapped back.
Forex traders have shared frustration as most major currency pairs have traded sideways for the past 6 months, even though the greenback has been quietly strengthening 1.3 percent beyond its 12 year high which was reached last March.
The greenbacks sharp decline today in reaction to the stock market may be an indication of further weakening in the months ahead amid indication of the Fed raising interest rates for the first time in almost 10 years.
Today in Forex trading, we bought the EURUSD ahead of a large 212 pip spike and we achieved our Take Profit goal of 98 pips. As usual, the week before September 1st is showing increased Forex volatility and we are excited as the markets show indication of strong trends and potential for bigger moves ahead. as wW look forward to the beginning of a new month with new highs, new lows, and strong trend.
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