Monday, November 11, 2013

OmiCronFX shows the way: Trading FOMC statements, interest rate reductions and jobs reports

Today (Nov 11th) is Armistice Day in the UK, Remembrance Day in Canada and Veterans’ Day in the US. All are public holidays. While this will not necessarily result in inactive markets, any price action there is will be tempered by the fact that trading can be expected to be thin. It might, therefore, be appropriate to remind ourselves of the highlights from the recent past.

On Nov 9th the FOMC made what was a dollar positive statement, commented on here.

Last Thursday there was an announcement from the European Central Bank that interest rates were to be reduced by 25 bps to 0.25%. The market claimed to be surprised by this but anyone that was watching the inflation figures for the Eurozone, as OmiCronFX was, would have been less taken aback by this development.

Friday brought the delayed US Non Farms Payroll report which, a over 200k new jobs, was a blockbuster in terms of recent such statistics. Developments such as this have raised, by a considerable margin, the expectations for an end to Quantitative Easing (QE) in the United States. This has implications for all the major currencies as well as for the crosses, and for hard commodities such as gold, silver and other precious metals.

Along the way to this juncture, OmiCronFX, with the assistance of its Silver Trigger automated routine and some insightful and incisive Technical and Fundamental Analysis, provided instances of illumination in the quest for profitability in Foreign Exchange trading. See “A little bit of magic on the Aussie”, “Trading the turn in gold” and “Trading ECB generated volatility” for just some examples of this.

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