This past week we witnessed the setting up of milestones as stocks ended January with their worst performance since 2009. The FOMC announcement minutes were exactly as expected and a rate hike is not on the cards for the near term. In the wake of all this, new highs were achieved for the USD as global markets scrambled.
The Yen Falls Short
The bellwether JPY which has strengthened week after week took a pounding across the board and in less than 48 hours, it plunged over 2% against the Greenback. The new week and new month should see much of the same.
Oil Prices – Where Does It Go From Here?
Oil made fresh lows only to find strong support. At first it appeared as if the market was saying “okay enough already” and it held firm, but then Friday came and within hours; oil was back under pressure. There is no reason to see any strength in oil or commodities.
USD – Holding Strong?
The picture is not encouraging as we look at China and global equities. Traders attention will always look towards strength and at this juncture there is not much to topple the USD without some earth shattering event or news.
The ForexSignal Trading Desk has focused on JPY and USD buying opportunities the last few weeks, but the JPY has now joined the ranks of the other majors and commodity pairs with bias toward selling.
So our belief holds firm, we have confidence that the USD strength will hold.
We look forward to sending Forex Signals to our worldwide client base to strong trading opportunities as they qualify and meet our criteria.
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