Welcome to another live session! In today’s live session, we went over some key points of Powell’s speech, what the current status of our trades is and what we can expect for the rest of the week.
Looking at the transcripts for Powell’s speech, we see there is a growing confidence in the United State’s ability to withstand the current slow-down of the economy. US Employment is at a half century low of 3.5% and inflation is not too far away from their 2% target. The Federal Reserve wants to continue placing emphasis on growing domestic jobs for US citizens as a buffer for the ongoing trade war and overall global economic slow down.
See our blog post on: Why Interest Rates Are Important for a Currency?
Powell’s speech had very little effect on our current EURUSD trade which is in some minor drawdown. Tomorrow’s CPI release may be a catalyst to moving the pair in our direction. We are also holding AUDCAD which is at entry, the pair has rejected resistance once again at 0.89800.
We are also currently waiting for a bearish closure below 1.22000 for GBPUSD to take a sell. Consequently, we have a similar bearish bias for GBPJPY as we await for a break below 131.100. We will have GBP GDP being released later tonight during the London session, so please be on the look out for trades for that release. I will see you all tomorrow for another live session, take care and happy trading!
See yesterday’s live session recap: October 8th, 2019 Live Session