Good Afternoon All!
Yesterday US session was bit of Roller coaster ride. EURUSD went as high as 1.3320 and then down to 1.3053. Market got upset because of Italian election as there is no clear win. I don’t understand why would that upset the investors end of the day Italy has to follow what EU has to say. Well this down trend in EURUSD will be corrected soon as fundamental moves never last long.
The interesting pair to watch was AUDUSD and NZDUSD who almost lost 100 pips in the night without any significant news. RBA assistant Governor said we might cut the interest rate to keep the AUD down which is a bold statement. So I will be very careful of buying the AUDUSD in the coming days as it is end of the months and we have Australian interest rate decision on 5th March. Economist are expecting a rate cut which is taking the pair near parity or at 1.0100 level.
GBPUSD opened as the biggest looser on monday and since then has recovered some ground but just trading sideways.
GOLD has picked up the momentum along with silver. For the new traders USDCAD and GOLD has some sort of relation between them. If GOLD goes up then CAD gets stronger and USDCAD goes down and vice versa. This is what we have seen in the past when Gold touched 1750 level USDCAD touched 9400 level.
EURJPY,GBPJPY and USDJPY lost almost 200 pips over night because of risk aversion in the market. However we have seen in the market over and over again that Fundamental impacts or risk aversion impact doesn’t last long so the JPY pairs will come back up sooner or later this week.
Another interesting pair to watch this week was EURGBP which touched 8800 level easily. I wrote an article about this pair 3 weeks back stating that It might touch at 8800 and I want to tell you all it will touch again so for who are thinking to sell the pair beware.
Thats all for now Please trade safe and keep up to date.
Thanks