FX Markets Sputter Along

FX markets are a bit messy as summer market liquidity is not helping matters but currency markets stammer along.

A very choppy  overnight session void of any particular catalyst but the eye opening interest in the EUR crosses has percolated through to EURO strength once again. With the EURUSD downside appearing very limited at this stage traders are left mulling the decision to either flatten up and hope for a dip buying opportunity or throw all caution to the wind and jump in at the top of the current cycle hoping for a  test of 1.2000.

Overnight volumes were dominated by investors clamouring for high side EUR exposure, but the greenback in general remains under the microscope as the market is itching for some clarity on both the US economic landscape and the muddled US political panorama.

Friday’s NFP is shaping up to be a majorly significant event.With summer setting in and holiday liquidity upon us, Friday’s jobs report could be the last hurrah before what is shaping up to be a very interesting Septemeber for Fed watchers. I suspect the street will be locked and loaded

Australian Dollar

The Aussie continues to give way as President Trump prepares to dig his heels in and intensify US scrutiny into Beijing’s trade practices. Since Australia is a major player in the APAC supply chain, the idea of an escalating trade war between the world’s two major super powers is not sitting well with AUD investors this morning.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes