28th November, 2016 – US Dollar lost some gains today in the early UK trading session. Since Donald Trump became President-Elect, US Dollar has been gaining ground continuously against all its major peers. This rally took EUR/USD to the key resistance level around 1.0500. USD/CAD broke the 1.35000 resistance, but the price couldn’t stay above this level as traders saw this as a good opportunity to make profits. Price of USD/JPY touched 114.000 before dropping down.
During today’s [UK] trading session, we saw huge USD selling pressure. As a result, US Dollar became the weakest currency and lost ground against other major pairs. Price of EUR/USD increased from 1.0575 to 1.0690. However, during the second half of UK trading session, traders changed their mind and started buying USD. From the very weakest, Dollar became the strongest currency and was able to regain all lost ground. So now, we are back to square one. It seems like USD is likely to be among the top three strongest currency pairs in today’s US trading session. There are no major economic reports realizing today, so expect USD pairs to move in a small range.
British Pound seems to be the weakest currency today; Brexit fears are likely to haunt GBP for months to come. GBP/USD climbed above 1.25000 when USD was under selling pressure today; now, the Cable is pushing below 1.24000. USD/CAD is flirting with 1.35000, a key resistance level for the pair.
This week is likely to start slow, but volatility is going to increase. Some key economic data is releasing this week, especially on Friday, 02 December 2016; Non-Farm Payrolls, US-unemployment-rate, and some other reports are few of those reports. This data may fuel the likelihood of Feds raising the interest rate in December if this data shows a stronger US jobs market. Some big FX options/contracts are expiring this week; you should [also] keep an eye on them!
I believe US Dollar is going to stay strong this whole week; USD is going to get even stronger if the jobs market data is encouraging. For News-Traders, Friday is going to be a blast i.e. if they make the correct prediction. :) I personally don’t trade during news releases, but I have seen some friend of mine execute some very high risk trades and make [and often lose :) ] a lot of money in doing so. The risk and reward for such trades is big; I personally don’t like such high-risk [and very unpredictable] trading. Is US Dollar going to dominate the Forex market this whole week? Well, I think USD is going to be among the top three currency pairs this week. Obviously, I am just guessing. :)