US Data and Powell

 Posted by at 9:57 PM  FX Market
Jun 162020
 

US released Core Retail Sales and Retail Sales data tonight 830PM (GMT+8). Results beat expectations and this pushed USD lower. Market reacted to step on the greed pedal so risky currencies AUD, NZD and CAD is going up. Sterling is up against USD as well.

It is notable that USD is stronger with EUR despite EUR released positive data as well (acting as a laggard).

Although currencies are moving after these data releases, it is prudent to wait after the testimony of FED Chairman Powell at 10PM (GMT+8). This is the meat of the day. Will he be as dovish again this time to bring the markets down or will he turn hawkish knowing that DJIA plunged 7% the last time he spoke?

It’s a tricky situation.

Market has suddenly turned bullish since yesterday. This could just be a technical rebound off a massive sell off. The rally up tonight could just be met with sellers to mark that the high from last week a top for now.

Play for tonight is to short if risky currencies against USD if it goes up and buy the same if drops down. Take away a 40-pip move.

UPDATE:

EURUSD Long: Entry 1.123, Stop -40 pips, TP +50 pips



EURUSD Long by traderh on TradingView.com

Trader H

TraderH is a foreign currencies trader and a former Certified Securities Representative in the Philippine equities market. All posts herein are personal views and are not endorsed by any organization whatsoever. It is important that you practice due diligence in your trade plans. This website and its authors will not be held responsible nor liable to any of the reader's losses.

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