Sterling could sink or soar 10% and is the ‘most interesting currency to trade,’ strategist says
- Brexit has been a key factor moving sterling since the referendum vote took place in June 2016.
- The currency is down about 13 percent since then.
- Brexit negotiating teams want to reach a deal over their future relationship by October. READ MORE @ https://www.cnbc.com/2018/08/07/sterling-could-sink-or-soar-10percent-strategist-says.html
Despite yuan depreciation, China reserves continue to grow
The recent depreciation of the yuan hasn’t seen massive capital outflows from China and surprisingly the country’s foreign exchange reserves have increased to $3117.95 billion. Going forward, we expect reserves to remain relatively stable as the central bank steps in and the government expand FDI inflows – Read More @ https://think.ing.com/snaps/china-foreign-reserves-reflects-little-worry-of-outflows/
Dollar weakens as China’s yuan stabilizes
The yuan CNH= has strengthened to 6.8284 from 6.9122 on Friday, when China’s central bank raised the cost of shorting the currency. That has helped to stem an approximately 7 percent decline since mid-June. Bloomberg News reported on Tuesday that the People’s Bank of China is urging banks to prevent “herd behavior” and momentum-chasing moves in a further bid to support the currency. Read More @ https://www.reuters.com/article/us-global-forex/dollar-weakens-as-chinas-yuan-stabilizes-idUSKBN1KS04A
WHAT IS THE USD SAYING?
USD DROPPED slightly below $95 this morning but looks firm for a bullish run. Bullish head and shoulder are in-tact for a new upward movement if the Resistance breaks. No major news today to be a catalyst.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 11.00am – NZD will to action with inflation data and RBA Speaks; expected to be dovish rather then hawkish.
- Tentative – China will release their Trade balance and USD Denominated Trade Balance anytime in the afternoon and is expected to be good.
- 1.00pm – JPY will go to action with Economy Watchers sentiment and is expected to be good.
- 10.30pm – US will release their Crude Oil Inventories and is expected to be low and in favor for the oil to raise.
Overall market awaits for US CPI data this Friday; market will continue to go sideways. Be cautious with your money management and always pay careful attention to Risk & reward before taking a trade.
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.