Today’s Key Market Drivers – 1st November 2017

Canadian economic data disappoints.

After two rate increases in 2017, the latest GDP figures for Canada disappointed investors on Tuesday with August GDP contracting -0.1%. This saw the USD v CAD move back higher above the 200 EMA on the daily chart closing a daily candle above the key level. Two consecutive daily closes above the 200 EMA on a daily chart will often attract more buyers and with the US Dollar being supported on the back of interest rates about to rise again and positive economic data beating economist’s estimates I encourage you to look for value propositions to buy the US Dollar where there is a zero or positive swap fee.

A US Consumer Confidence report showed US citizens are growing more and more confident pushing up the index to 125.1 vs the 121 leading economists expected. 125.1 according to CNBC is close to a 17-year consumer confidence high and coupled together with another positive manufacturing number clearly positions the US economy as a stand out performer heading into 2018. This Friday sees the latest US unemployment figures due for release with over 300,000 jobs expected to have been added in the month of October. A better than expected jobs figure is only going to see more buyers for the greenback in the short term.

While Aussies and Kiwis are asleep in the wee hours of Thursday morning Donald Trump will announce who will be the next Federal Reserve Chairman to replace outgoing Chair Janet Yellen who steps down in February. This will likely impact the US Dollar in the short term and I expect increased volatility across the board on currencies and stock indexes. The appointment will come just hours before the latest statement from the US Federal Reserve so you must anticipate the US Dollar to be up and down like a cork in the ocean for a few hours on Thursday morning before settling back down. Quick moving volatility is exactly the reason why I don’t like trading small time frame charts such as 5 minute or 15 minutes and thousands of traders will likely be taken out of their positions. One of the key things to learn when developing your skills as a trader is the ability to stay in the game.

 

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 key-note 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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