Today’s Key Market Drivers: 11th September 2019
Take a day off if you wish.
Yep, the market is boring right now and I urge you to take a day off and get away from chart gazing because the price movement is likely going to be small.
For those new traders to LTG GoldRock, there is a good lesson to be learned by seeing the lack of price action and no high impacting economic news. Traders inside investment banks and hedge funds are waiting for the ECB policy statement on Thursday and the US inflation figures before entering any trades that have the potential to cause impulsive moves.
The Yen’s decline tells an important story.
Although financial markets are generally remaining range-bound waiting for the next piece of high impacting economic data the Japanese Yen continues to retrace lower and is telling me a story of a stock market that wants to go higher.
Stock dividends of blue-chip companies are going to pay a higher yield than fixed income such as bonds and therefore traders are likely going to buy up dividend-paying stocks which in turn is going to see the safe-haven Yen, Swiss Franc and Gold likely retrace in value. There is no fear in the market as we head into Wednesday’s Asian trading session so, therefore, the current positive sentiment should remain.
Pound remains supported after stronger than expected jobs numbers.
Whilst political and Brexit instability remains the British Pound continues to be well supported and Tuesday’s better than expected wages and jobs numbers were a welcome surprise for a market that is growing increasingly concerned about what will happen on October 31st.
The official unemployment rate dropped by 0.1% to 3.8% and average weekly earnings growth ticked up to 4% annually in the UK. Both data numbers beat economists’ estimates and if the UK can somehow exit the EU with a Brexit deal the market likes on October 31st the Pound will likely skyrocket in value given the economy is doing reasonably well compared to the rest of Europe.
Australian business confidence is low so what will consumer confidence numbers say today?
Yesterday’s Australian Business Confidence numbers showed business owners are growing increasingly nervous about the current economic climate and today we will get a chance to hear from consumers when the latest Westpac Consumer Confidence numbers are released.
Business Confidence data if out of line with expectation will move the local currency more than a Consumer Confidence number so although today’s data will be closely watched it isn’t likely to start any new trends or impulsive moves.
In other news today.
What other news? Take the day off, get away from your screens and enjoy some fresh air. The market will heat up from tomorrow and we will have plenty to discuss.
We are all busy, you just need to make what it is you desire a priority and work your ass off to get it.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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