A full weeks advance by the USD was stopped in its tracks during the US trading session on Monday as low liquidity caused by the Easter long weekend affected the Euro zone and Australian markets. Across the board Monday we saw some Greenback sell off, which appears to be more like profit taking from last week’s move as there was no real sustained move or follow through to suggest anything more.
The NYSE swung between gains and losses throughout most of the trading session with the Bulls prevailing ever so slightly as the session came to a close, ending the day with mixed results.
Same Old Story – The Fed And The Jobs Report
On the back of last week’s Brussels terror attack together with weakening financial news out of the Euro zone, it does not seem likely that the Euro rally that started mid-March will prevail. Once again we look to then Fed for direction Tuesday as every comment will be scrutinized and examined in detail. I expect some swings in either direction as FOMC Member Williams speaks. Regardless of whether the news is what we expect to hear or not, the markets always react whenever a Fed member speaks. The bottom line; trading during Fed statements or announcements is like driving on an oil-slick highway – not a good idea!
A series of announcements should get activity moving as we build towards the ever-volatile US Jobs report on Friday, which most analysts predict will be nothing much different to what we have seen the last few months.
What To Expect
It is my belief that neither Tuesday’s Fed statement nor Fridays Jobs report in this struggling economy coupled with the current political climate will not warrant any interest rate increases for the foreseeable future.
As always the ForexSignal trading team is always looking to identify trading opportunities as they unfold and alerting our clients worldwide with Forex Signals sent to emails and phone and automated with our Trade Copier.
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