The GBP is the strongest currency in trading today as the worries about the Scotland vote started to subside (no polls today). There will be many polls going forward as outlined by Ryan (CLICK HERE). As a result, we could expect continued volatile action. It will all come down to September 18th, and will the voters have the will to click “Yes”. In any case the GBP is higher across all major pairs and doing the best against the NZD.
The worst performer today…NZD. The RBNZ kept rates unchanged as per expectations and although Gov Wheeler signaled that rates would rise, he agreed with the markets idea that it won’t be until the March/April time period. He also reiterated that the NZD still was overvalued and should see a “significant” drop. This is after a 400-500 drop in the NZDUSD since the last meeting in July. So I guess he means it.
The Forex Winners and Losers for September 11 2014
This is what the worst performing NZD pair looks like (the GBBNZD). The entire move lower from last weeks high to the gap on Monday low, has now been retraced and we are back where we started – at the trend line. We did break above the line, but the price has come back down off the peak today. Those crosses can get pretty wild.
The GBPNZD has retraced the entire move down from last weeks high in the last 3 trading days.
Initial Claims out at 8:30 AM ET with 300K expected. Canada has New House Price Index also at 8:30 AM ET with expectations of +0.2%. The USDCAD has reversed it’s entire move lower from yesterday after bouncing off the 100 hour MA and bull flag lower trend line (see post from yesterday PM about the USDCAD). The 1.0986 to 1.0996 area is support now (get it off of the daily chart – not shown) and should now be support if the buyers still love it (which might be debatable but we will defer toward the love side). Good fortune with your trading today.
USDCAD rockets higher off 100 hour MA and bull flag trend line.
