Forex Analysis for Wednesday 26th October 2016
Tuesday saw BoE’s Carney says that monetary policy has been overburdened and that they will not depend purely on QE if more stimulus is required and that they have a range of options (Zerohedge). ECB’s Draghi stated that the ECB would certainly prefer not to have to keep interest rates at such low levels for an excessively long time (Zerohedge).
This morning (Wednesday) Australian CPI beat expectations at 0.7% vs 0.5% and the ASX Futures price indicated a 6% chance of a rate cut on 1st November.
US stocks were down due to Apple’s quarterly revenue being 9% down on prior, despite this being forecast. The Euro50 drops from a high. Oil falls on an inventory build (not reported on economic calendar). On the money markets, the AUD strengthens after the positive CPI number. The USD spikes to new 7 month highs before falling back. The EUR moves sideways. The JPY remains range-bound and the GBP spikes down before Carney’s speech for a number of postulated reasons before regaining most of the loss.
Later today we have Crude Oil Inventories.
VIP Club members please [mepr-login-link] to access your Daily Alert video.
For VIP Club members, this commentary is augmented with a short daily video where I discuss the trades I am in and the opportunities for tomorrow. If you would like a free one month trial to the VIP Club you can find out more HERE.
Here is your Daily Alert video. I start to discuss the trades at 4:45.
There is an archive of all VIP Club member’s content on the VIP Club page.