Forex Lock and key

In this Forex update, we are having locks representing the hot events of the day and keys representing the trading actions to implement, as per the trading situation.

So, let‘s move to the today‘s Forex happenings and their consequences on the trading. Main heads are:
Alcoa lashed out off the earnings session with a surprise profit in Q3 and the Asian stocks are trailing higher.

In US, gold prices reached new heights and USD dropped but later on due to strengthening SEK during night session after last day‘s weakening on the Baltic crisis USD showed little highs.

The bond yields dropped down further, due to strong US bond sale. Downturn in US consumer credit dropped USD 12bn in August.

In Australia, employment claims indicated surprise increase of 40.6k in last month. AUD increased iIn reaction the AUD increased and rate prospects amplified more.

Today‘s course of action: Economic strategy formulation meetings in the BoE and the ECB will formulate the top stories today.

There is no expectation that ECB will make any changes in fiscal policy. The concentration will be on the press conference and its outcome.

It is perhaps quite early for Trichet to compose any tough declaration on the twelve-month tender trade in December and the financial vision is probable to remain unmoved.

Trichet may remark on the short allocation at the current LTRO. BoE is expected to wait for the turning situations as well, but will most likely carry on alternatives for further easy opening.

Whereas Forex markets will wait for “exit soon” indications, they are not expected to find something fresh and the ECB meeting is not expected to amend the recent market outlook of fiscal policy in EUR.

In the US, the treasury is selling USD 12bn in a 30-year reopening. Because of the earlier sales this week, the market force is possible to be nominal.
Forex trading view: Today, the market will focus on the outcome of the BoE and ECB meetings. The basic rate remain unchanged at 0.50% and the asset buying target also sustained at the GBP of about 175bn. Now, the statement released will be little softer and will keep open the trading doors for more options.
However, the UK fiscal policy is very loose and there is no more expectation for further mitigation of policies. This can give GBP a little bounce in today‘s trading and if nothing malicious event occurred then strong trading is expected against EUR.

Coming back to the ECB meet, the Forex trade is indicating about the tensed currency trading, due to low demand at last week. The uncertainties are still prevailing in the Forex markets.

The article gives information about the Forex trading condition and the awaited events of the day. This helps the trader to make Forex positioning opinion regarding the possible lows and highs of the currency value.

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