Welcome to today’s Market Blast.
Today, we will take a look at Forex Trading on the S&P500, the Dow Jones, CADCHF, GBPCAD, AUDNZD, WTI, and Brent Crude Oil.
We looked at crude oil last time, and the last thing we want to do is to second-guess the reliability of ceasefire talks in the Iran war.
Well, it seems that the latest talks are being taken seriously as the price of crude oil is falling below $100 and the WTI/Brent spread is at about $5, which is normal.
The point is, of course, the Strait of Hormuz is still considered unsafe for passage, which is keeping the price of crude inflated.
Last time, I had you paying attention to a currency pair that you may not have noticed before.
Yes, AUDNZD and why did it move so much, and why did NZD suddenly get stronger?
Firstly, Wednesday’s Australian CPI was lower than expected, which drove AUD weaker.
Then, the RBNZ voted to keep interest rates on hold, but that is not the whole picture.
The vote was 4 – 3, quite narrow, which told the market that the central bank might be going to raise interest rates at some time soon, this year.
As I mentioned in the last video, when you see news events that affect two currencies so close together, you may see some big moves if the news is contrary.
Secondly, it’s not just about the figures, and if they missed analysts’ estimates, it’s about why the figures got there.
And, thirdly, very often the statements and the press conferences that floor news events can move the markets even more than the figures.
Today, we have a slow news day with Canadian GDP.
I encourage you to look at all CAD pairs and look for trends like this bearish price action on CADCHF.
So, if the news drives price action against the trend, we have the option of entering a trade in the direction of the trend.
Another pair we are watching is GBPCAD, which has been bearish all week, but we see price action in a falling wedge, which is a bullish pattern but keep an eye on the news.
You will have noticed the huge rally on the S&P500 and the NASDAQ based on AI and tech stocks, but the Dow Jones has lagged behind.
Very often, investors will move into a risk-on mood, and the Dow will catch up.
