Dollar cuts losses as election jitters settle; focus turns to Fed

The dollar cut its losses on Wednesday as investors further digested the results of the U.S. midterm congressional elections, after an initial sell-off on expectations that the outcome would make further fiscal stimulus measures unlikely.  The elections delivered the most expected outcome: split control of the U.S. Congress, with Democrats winning control of the House of Representatives and Republicans cementing their majority in the Senate. “There was this expectation that if we didn’t get a divided Congress, we might see risk sentiment becoming a little shaky, but since that didn’t happen we have a risk-on move,” said Mazen Issa, senior foreign exchange strategist at TD Securities in New York. Read more @ https://www.reuters.com/article/uk-global-forex/dollar-seesaws-as-investors-assess-risks-of-deadlock-after-midterms-idUSKCN1NC023

WHAT IS THE USD SAYING?

USD swings and goes back to $96 as expected; the question now is – where will the USD goes and to answer this, it will be the FED next move for the Rate. For now the USD is poised to continue its swings.

TODAYS NEWS THAT MGHT AFFECT YOUR TECHNICAL TRADES

  1. Tentative China will release their trade balance – volatility expected between 12pm – 2pm today.
  2. 1.00pm – Japan will release their Economy WATCHERS SENTIMENT – little volatility expected.
  3. 3.00pm – 3.45pm – Germany and France will release their Trade balance.
  4. 5.00pm – EURO will release their Economic Bulletin – expect volatility – It reveals the statistical data that the ECB Governing Board evaluated when making the latest interest rate decision, and provides detailed analysis of current and future economic conditions from the bank’s viewpoint.
  5. 6.00pm – EURO will release their economic forecast – The forecasts serve as the European Commission’s basis for evaluating economic performance and trends of EU member states in regard to potential austerity measures and other forced spending cuts.
  6. 9.15pm – Canada wil release their Housing starts.
  7. 9.30pm – US will release their Unemployment data – no movement expected.
  8. 2.00am Friday – FOMC Statement – expect volatility.

Be cautious as thE FED releases the FOMC MINUTES – there will signal of FED raising the rates this December before the year end – this will be in favor of the USD. Always keep money management in order.

High Risk Investment Warning:

Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.

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