FX Market Insight - 10th October 2018

Dollar takes a dip as relief rallies on currencies and Trump Geopolitical issues take hold
Daily Market Insight 10 Oct 2018
Using the Traders4Traders Daily Routine lets take a look at
1. What happened yesterday and whats moving the currencies around
2. What to expect today
3. Trading Opportunities for the rest of the week
So lets take a look at yesterdays charts
What happened yesterday
[Run thru the directions on the hurly first then go into the detail on each pair
Overview
With very little fundamental data releases during the first few days of the week the currencies have been moving essentially on news from each of the currencies. The Chinese Yuan has temporarily taken
Yesterday saw the halting of the USD rally albeit most likely only temporary but will need a catalyst to halt the USD downside dip. This was caused by relief rallies on the EUR, Sterling and the AUD and Kiwi.
Lets take a look at what happened to the currencies
GBPUSD
Probably the biggest mover of the lot as Barnier came out saying that there could be a Brexit agreement as early as Monday causing a 100 pip move to the upside. Sterling is driven by news of Brexit and is overriding the fundamentals so volatility remains pretty constant on the Sterling
EURUSD
The EUR essentially followed the GBPUSD, boosted by the same news about an Early Brexit deal coming together causing similar volatility as Sterling during these talks, along with any sporadic news about Italy.
AUDUSD
The AUD looks like it jumped on the back of the weakening Dollar and found an excuse to halt the downside. This is most likely temporary and is a good time to start looking for good levels to short again if the USD starts to rally again.
NZDUSD
The Kiwi had a similar 60-70 pip rally against the dollar.
USDCAD
The USDCAD is essentially in a short term sideways range and CAD strengthened against the dollar.
USDJPY
The YEN continued to see money flow into the yen through fears of the Yuan depreciation and US Traiff threats to China, causing the dollar to weaken further.
USDCHF
The Swissy remains pretty much unaffected at this point and continues to trade sideways in a tight range since 3rd October.
USD
The Dollar was took a hit as virtually all the other currencies strengthened against the Dollar. Trump also chimed in just to exasibate the situation iterating he didn’t like what the FOMC (FED) were doing and reminding people that the Mexican wall will be built.

What to expect today (Open Cal)
Today could be quite quiet whilst traders work out which way to go. Whilst there is not much Ecomonic data out this week today sees the Sterling GDP month on month and Manufacturing Production figures, if that comes out strong then expect to see Sterling rally giving more weakness to the dollar. Also the USD PPI later today – again watch out for these as weakness here could drive the USD lower still
So overall looks like a wait and see day with little certainty anywhere (if I can use that word).
That’s it for today hope you all have a peaceful day and remember stay safe and protect your capital.