{"id":155153,"date":"2019-09-10T11:01:54","date_gmt":"2019-09-10T15:01:54","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=155153"},"modified":"2019-09-10T10:13:36","modified_gmt":"2019-09-10T14:13:36","slug":"thin-trading-takes-over","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/thin-trading-takes-over\/","title":{"rendered":"Thin Trading Takes Over"},"content":{"rendered":"
September 10, 2019<\/div>
\r\n<\/div><\/div>

By <\/strong>Orbex<\/strong><\/a><\/p>\n

Today, trading activity is thin<\/strong>\u00a0compared to Monday.<\/p>\n

All of the FX major currencies seem reluctant to move in any direction with narrow and short-lived spikes making the best of the session so far.<\/p>\n

Pound Lower on Poor Jobs Data<\/strong><\/h2>\n

Despite Monday\u2019s upbeat session,<\/a>\u00a0cable struggled\u00a0to get past the multiweek high of 1.2380<\/strong>\u00a0registered only yesterday. Not only did bulls take a break but they also initiated a sizeable sell-off after receiving a rather\u00a0disappointing jobs report<\/strong>.<\/p>\n

That, however, marks a good setup as\u00a0bulls rejected bears at the psychological $1.23.<\/strong>\u00a0With that said,\u00a0unemployment and wages in the UK grew.\u00a0<\/strong>This\u00a0means that the steep decline could only have been headline-based infused, rather than ending as a reversal.<\/p>\n

EURUSD and USDJPY Unmoved<\/strong><\/h2>\n

With the ECB meeting on Thursday, it is uncertain whether we will see Monday\u2019s flows again before the crucial event. EURUSD had a good session yesterday. But, the\u00a0rejection caused at the $1.1050<\/strong>\u00a0is likely to keep the currency pair in a tight range.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

German trade data did support EURUSD on Monday.<\/a>\u00a0However,\u00a0since the trade war remains unresolved,\u00a0traders must stay cautious. At least until further clues on policy guidance<\/strong>\u00a0come to light on Thursday!<\/p>\n

The continuous\u00a0recovery in risk appetite has led safe-haven flows to lower levels.\u00a0<\/strong>This has caused the\u00a0yen, as well as the Swiss Franc, of course, to move lower against the greenback.<\/p>\n

USDJPY recorded a nice breakout move above 107 on Monday. But with the US calendar somewhat light until Friday,\u00a0it will most likely be safe-haven activity affecting dollar-yen.<\/strong><\/p>\n

USDJPY does indeed look bullishly biased on the back of the PBOC\u2019s decision last Friday to lower the reserve requirement ratio (RRR) for financial institutions by 50 basis points.<\/p>\n

Commodity Pairs Bullishly Eco-Biased<\/strong><\/h2>\n

Australian home loans and electronic card retail sales in New Zealand are keeping Aussie and Kiwi firm against the buck<\/strong>. Not only has risk appetite sent both pairs to fresh multiweek highs, but recent data also suggest that both economies are walking on a healthier path than before.<\/p>\n

Although\u00a0mixed in the first half of the session<\/strong>, Monday\u2019s closing saw AUDUSD and NZDUSD adding another positive session onto their consecutive winning streak. It is only a matter of time before bulls continue adding more bets.<\/p>\n

Commodities Also Lackluster<\/strong><\/h2>\n

WTI is currently taking a breather<\/strong>\u00a0from yesterday\u2019s surge. This comes amid the Saudi Minister reshuffle and a reach of the psychological resistance at $58 per barrel.\u00a0Crude oil prices could move higher as profit-taking hasn\u2019t yet initiated<\/strong>. It could be the NY open that triggers a fresh breakout to new highs.<\/p>\n

Gold also remains unchanged<\/strong>\u00a0early on Tuesday, similarly to yen and the Swiss franc. However, XAUSUD was little unchanged on Monday as well. It didn\u2019t follow the yen\/franc rhetoric as\u00a0investors seem to be more confident on the precious metal than they are on currency safe-havens<\/strong>. Gold is likely to put on a good fight around the $1500 per ounce as this remains the most active level for both sellers and buyers. At least for now.<\/p>\n

Equities Slide but Dollar Mixed<\/strong><\/h2>\n

The dollar slid yesterday and equities closed mixed. However, today, the two markets seem to have replaced one another.\u00a0The DXY trades near its open price and SPX is weak, falling below 2970 from an open of 2980.<\/strong><\/p>\n

Lacking economic data and despite the PBOC\u2019s decision, the dollar ended Monday with a Doji candlestick, albeit bearishly biased.\u00a0With 98.20 holding strong we could see a short-term bullish pullback<\/strong>\u00a0registering in one of the following sessions (if not today.) But that should be supported by either politics or economics.<\/p>\n

The PBOC\u2019s decision<\/a>\u00a0didn\u2019t seem to have much of an effect on equities. So\u00a0the current decline could be attributed to recent, minor trade talk development between the US and China.<\/strong><\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Today, trading activity is thin\u00a0compared to Monday. All of the FX major currencies seem reluctant to move in any direction with narrow and short-lived spikes making the best of the session so far. Pound Lower on Poor Jobs Data Despite Monday\u2019s upbeat session,\u00a0cable struggled\u00a0to get past the multiweek high of 1.2380\u00a0registered only yesterday. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-155153","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=155153"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155153\/revisions"}],"predecessor-version":[{"id":155158,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155153\/revisions\/155158"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=155153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=155153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=155153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}