FX Trading Week Ahead

FX Trading Week Ahead

FX Trading Week Ahead

Global Overview

Macron wins the French election but Euro fades.
Tensions remain high in North Korea.
Dollar mixed despite strong Non-Farm Payrolls report on Friday.
EU making a lot of BREXIT Noise.
China’s Trade Surplus Beats Forecasts.
Crude oil prices still look vulnerable after snapping a 5-day losing streak.

Another big week for FX traders data from Europe and the US that will create some volatility.

Emmanuel Macron’s win in the French Presidential elections is really a non event, it simply means more of the same, for the Euro it is not good news either, Macron is weak and the EU will continue to erode as will the Euro.

The uninformed initially pushed above the 1.1000 figure when the first results started coming in; however, serious traders immediately took advantage of them and sold.

The Dollar remains mixed the Fed’s June meeting will be the focus here, however the Trump policies that may see trillions of dollars come in to the USA will strengthen the currency.

What to watch

Big moves in the Yen and Won as North Korea continues to be a central factor.
Improving economics in the UK may spark a GBP rally.
AUD outlook remains negative, Malcolm Turnbull’s Government continues to make a mess.
Macron will cuddle up to Juncker and Merkel, the EUR outlook will be downgraded.

The US Dollar has been gaining across the board as markets cheer Trump reforms.

Trump is building the economy for a strong rebound, Retail Sales report at the end of the week.

China’s April imports rose 11.9 percent, cooling from March’s 20.3 percent rise, official data showed on Monday, and missing analysts’ expectations for an 18 percent rise.

Exports rose 8.0 percent from a year earlier, slowing from a 16.4 percent rise in the previous month and short of expectations of 10.4 percent.

Oil prices rose on Monday as Saudi Arabia’s energy minister said an OPEC-led production cut scheduled to end in June would likely be extended to cover all of the year, or even into 2018, although another increase in U.S. drilling capped gains.

Brent crude futures were at $49.48 per barrel at 0652 GMT (2.52 a.m. ET), up 38 cents, or 0.75 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $46.52 per barrel, up 30 cents, or 0.7 percent.

Australia will hold an inquiry into competition in the country’s financial system, following a series of scandals in the banking sector and public allegations against the “Big Four” banks of abuse of market power.

The latest inquiry is part of a number of government measures since last year aimed at alleviating public concerns about the power of the big banks, after revelations of misconduct in the industry.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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