Forex Market Majors Consolidate on Turbulent Trading Day

Forex Market Majors Consolidate on Turbulent Trading Day

The Australian Dollar, Japanese Yen and US Dollar all saw a bit of buying pressure on Tuesday morning. This is despite the fact that today has been quite a volatile day in forex trading so far. Experts cite this as evidence of consolidation within the major currency pairs after an earlier rally sparked by rumors that Bitcoin was to be added to Coinbase

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The “asian session forex trading strategy” is a strategy that uses the major currency pairs of the day. The idea behind this strategy is to use the volatility of these major currencies to make profits.

Forex Market Majors Consolidate on Turbulent Trading Day

Forex Market Majors Consolidate on Turbulent Trading Day

 

  • Both the pound and the euro are holding steady.  
  • NFP Numbers in the United States Are Better Than Expected
  • Prior Gains on Wall Street are Given Up

The FX market was in a more upbeat mood as Friday trading approached. This comes after the previous trading day’s advances and the Dollar’s minor dip. This weakening helped both the Pound and the Euro maintain its early gains, and it seemed to be linked to a cautious stance in the wake of the US NFP employment statistics, which came in stronger than anticipated. On Wall Street, gains were seen across all major indexes on Thursday, but they were mostly reversed on Friday.

Friction Is Caused by NFP Data

Early on Friday, traders continued to sell the US dollar as they awaited job data from the Department of Labor with trepidation. Early indicators suggested that employment growth in the United States would be weaker. On Thursday, this impacted on the currency. Treasury rates have begun to decline as well. These lower figures served to alleviate some of the inflationary pressure and market anxiety that existed earlier in the day. 

The headline figure from the NFP report was expected to slow to 325,000, according to analysts. This would be a considerable decrease from the previous month’s figure of 428,000. In reality, the reported numbers were 390,000, which was more than predicted. Although the results were still lower than the previous month, they did drive some back toward the US dollar.

The major currencies are holding their ground against the dollar.

The USD Index, a measure of the Dollar’s strength versus a number of other major currencies, sank as much as it has in two weeks as the USD sold down modestly at forex brokers. It is still in a strong position, but it has given other major currencies some breathing room. Both the Pound and the Euro have been doing well.

Early on Friday, the EUR/USD traded above 1.075, which was somewhat higher in the early hours before falling on the announcement of employment statistics. The prevailing message of the Euro was that the Central Bank needed to be more aggressive in combatting inflation, according to speeches by ECB policymakers. As the Kingdom celebrates Queen Elizabeth’s birthday this weekend, the Pound traded near 1.26 before reversing course.

Stock trading remains choppy.

On Wall Street, Thursday was a good day. With substantial increases, all three main indexes ended a two-day losing streak to end the week on a positive note. As a result, the markets are now in positive territory for the week, as they aim to build on the previous week’s gains. 

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Trading had been choppy through the week and this was demonstrated in Friday trading as all the major indices gave up gains from the previous day. The Dow Jones dropped back more than 1% while the S&P followed with a 1.6% decline. The biggest loser of the day though was the Nasdaq which dropped 2.5% to erase any positive momentum for the week.

The “worst time to trade forex” is a day where major currency markets are consolidating. This means that the price of each currency is more stable and less volatile.

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