FX market brings volatility to the table – Market Overview – November 24

FX market brings volatility to the table – Market Overview – November 24

For the first time in quite a while, an economic figure has directly impacted the foreign exchange market.

The US manufacturing PMI figure was released yesterday, well above expectations, 56.7 vs. 53 expected, and the Dollar saw an immediate rise against almost all currencies.

In its price against the Euro, the Dollar appreciated almost a full figure, a movement that triggered stop-loss orders on long market positions. The action was generalized against all currencies that are traded against the Dollar.

In different market scenarios, traditionally, this would be the expected behavior, but in the current situation in which the Federal Reserve has promised to keep interest rates at their historical lows for at least two years and until the previous level of job creation is reached, a bullish reaction of the Dollar like the one we witnessed yesterday does not seem to make much sense.

Today, the US Dollar has weakened again, and yesterday's movement has been totally or partially undone.

Therefore, it is only a sign of the general positioning of the market in which most of the participants are positioned against the US Dollar, something that needs corrections of this type to decongest it. In short, it is just more technical than fundamental movement.

The Australian Dollar

An example of this can be found in AUD/USD, which has reversed the movement after the fall experienced yesterday, surpassing the maximum of November to the 0.7365 area.

These better economic data that we are witnessing these days will benefit high-beta currencies such as the Australian Dollar, which in turn are positively correlated with world growth levels.

The British Pound & Brexit

Another currency pair that is being favored by the intrinsic weakness of the Dollar is GBP/USD.

It was the Dollar pair that suffered the least downward pressure yesterday. Here, besides, it must be considered that the British Pound has suffered a severe punishment by Brexit in the last five years.

As we approach the deadline to reach an agreement on the terms of Brexit and although there is no confirmation about it, information is leaked that the negotiation could be favorable in terms of an agreed exit, the short positioning of the market on the British Pound begins to undo, and this is giving support to the British currency in recent weeks.

The 1.3500 zone is a significant resistance level that, if exceeded, would propel the pair to higher levels starting at the 1.37 zone onwards.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.