CURRENCIES GOES WILD EARLY THURSDAY MORNING. FLASH CRASH!!
In what some have suggested is a chained liquidation stemming from the collapse of AAPL shares after-hours, USDJPY just flash-crashed a stunning 4 handles (the biggest drop since Nov 2016) to its lowest in over two years… JPY suddenly panic bid…Pushing JPY to its strongest against the USD since Nov 2016… In addition to JPY, AUD and TRY also crashed… Having the smell of a major carry trade unwind. Reuters saying biggest move since 2009. Obviously exacerbated by this being the worst period for FX liquidity, but still…”probably just a little glitch” – Zerohedge.
Dollar gains ground to begin 2019 as China data temporarily rattles global markets
The dollar gained ground versus most leading rivals, with the exception of the Japanese yen, on Wednesday, after a round of weak Chinese economic data underlined global growth worries and was blamed for sparking a global equity selloff. Markets “remain fragile and safe havens remain bid. The USD (U.S. dollar) will have a hard time selling off too dramatically as its attraction as both a safe haven and a high yielder will matter and spark further demand for USD assets,” said Brad Bechtel, analyst at Jefferies, in a note. In recent trading, the ICE U.S. Dollar Index DXY, +0.66% was up 0.6% at 96.773. The dollar index logged its best annual rise in three years, up 4.3% in 2018, a year marked by worries about global tariffs, softening international economic growth and a Federal Reserve apparently adamant about normalizing interest-rate policy, if now at a slower pace than imagined just a few months ago. Read More @ https://www.marketwatch.com/story/dollar-firmer-as-skidding-stocks-weak-chinese-data-rattle-markets-2019-01-02?siteid=rss&rss=1
WHAT IS THE USD SAYING?
Global growth worries, higher oil flatten yield curve
Yields on long-dated U.S. Treasury securities fell to their lowest in nearly a year on Wednesday on concerns about the health of the global economy, a worry exacerbated late in the day when Apple Inc (AAPL.O) cut its sales outlook and sent U.S. equity index futures tumbling. Read More @ https://www.reuters.com/article/us-usa-bonds/global-growth-worries-higher-oil-flatten-yield-curve-idUSKCN1OW157?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29
THURSDAY NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES
- 4.00pm – Market will start with Spain releasing their unemployment change. expected to be poor.
- 5.30pm – UK will release their Construction PMI – expected to be weak.
- 8.30pm – US will release their Jobs cuts – no change is expected.
- 9.15pm – ADP – Non-Farm employment change – no change is expected .
- 9.30pm – US will release their unemployment – expected to be good.
- 11.00pm – US will release their manufacturing PMI & Prices – expected to be good – we BUY USD.
We are expecting data to be good for US and yesterday CHINA CAIXIN fall to below 50 at the index is not a good sign for the world. Further crash is expected for the market. Always have good money management.
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