As always, plenty of trading opportunities to discuss and consider as the US forex session gets underway, and following on from the London session which was dominated by two currencies, namely the Aussie dollar and the British pound. For the Aussie dollar it was unemployment data which came in ‘worse’ than expected, yet the currency strengthened, and the reason for this was simply this. Whilst the headline number may have been poor, participation rates and so full time employment rates were up with the markets reacting accordingly to this ‘positive’ news despite a miss on the jobs number itself. This was followed later in the morning with some strong retail sales data for the UK, which sent the pound soaring higher, and against the heavily bearish sentiment of the last few weeks, as the currency continues to be driven lower over uncertainty surrounding Brexit and the possibility of a no deal which grows ever stronger and increasingly likely give the new Prime Minister is likely to be Boris Johnson.
Another currency in focus was the single currency, following comments from the ECB regarding inflation reports and this delivered a excellent trade in several pairs, not least the EUR/GBP and also the EUR/AUD, and all clearly evident on the currency matrix and the currency strength indicator. And as always it’s then a question of hunting out reversals or joining the current trend. All trends start from congestion phases – this is where trends are born and using the renko indicator for entries is a great way to use this non time based chart, blended with time based charts. Finally of course with the Quantum Trading tools and indicators we have the four currency indices of the USD, the euro, the British pound and the Japanese yen which provide yet another perspective for the individual currencies themselves.