fx Market – we make the point of the week
Dear Friends of the site play on the stock exchange, from now on every weekend you can find on our site, at weekends, an update on the situation of the Forex market.
To be able to operate on the Forex market, to understand what are the hot topics on which to invest it is essential to have at the beginning of the week a clear picture of the inermarket situation, then to understand what the sentiment of the market and understand the strong market trends and therefore Operate following the same.
To understand what happened this week, we have to start by analyzing the seventh preceded. The hot topic on Forex These past few weeks is related to the Fed’s economic policy.
-Last week everyone expected a rise in rates by the US central bank, not only did this not happen, but the Yellen, the President-in-Office of the Fed, opened the possibility for new expansionary measures. How did the markets react? Very bad, both the classic European stock markets and the American stock markets. On the Forex market, the most dangerous fluctuations have been noticed on emerging markets that have strongly swerved with this continual uncertainty.
-Attention, twist again, the Yellen in a statement two days ago said that by the end of this year raise rates. This decision gave a strong push to the markets, especially to the European ones, favoured by a very strong euro dollar. But then what happened? In fact the Central American Bank did a test, with a statement, to probe the reaction of the market and then realized by the reaction, that the market prefers a rise in rates and then we to play in the bag we believe that in the meeting of December this to Vverrà.
From the point of view of the forces on the market this reaction, seeing also the ‘ trend of prezzidi these days how will determine the balances in the field?
-We will have a good chance of strengthening the dollar on Euro where, we remind you that a very strong European expansive policy is in place.
– A strong strengthening of the AUD, in fact this clarity of American policy is favouring the raw materials that Australia is rich in, and therefore the AUD we believe will be one of the strongest currencies on the market and therefore succeed in being stronger even than Strengthening the dollar. So specifically we believe that the AUD USD cross should be strengthened.
-Cad, the currency has soferto a lot in recent months, but it is a currency very linked to oil, also with the other commodities is having a strong appreciation and therefore we are convinced that in the middle the Cad is destined to strengthen a bit against all Currencies.
-Euro, if the situation returns to a state of apparent calm should continue in its natural path i.e. the devaluation of all cross-currency. We remind you that the ECB of Dragons has stated several times to be ready to intervene in case the Euro abandons the marked path of devaluation.
-Yen The ugly data arrived from Japan make it almost certain that the Japanese Prime Minister Abe will again be forced to new stimulus measures, we do not know if enlarging the pruning of the quantity easing already in place, but certainly after the efforts made up to now Certainly won’t give up the grip. So we believe that the Yen is destined to continue to depreciate in the medium term.
-The New Zealand dollar after a strong devaluation in recent months, seems to have finished at least in the short its run, and therefore there are new investment opportunities betting on its revaluation rather than a devaluation.
So beware of the market in the next few weeks that should start a new reversal cycle on many cross and take a very strong directionality again, but in the opposite direction to that view in recent months. So our advice is to pay great attention to the market and if you have pleasure to follow our analysis on the various cross-currency daily, because there are so many opportunities to trarding in formation that will give good satisfaction to us Trader.