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Forex Today: Markets See Weak Risk-Off Sentiment

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Markets are trading in line with weak risk-off sentiment, nudging safe havens higher and stocks and commodities lower.

  1. Markets have had a quiet start to the week. Although most stock markets have taken some minor losses, it is worth noting that major US indices and the DAX in Europe are close to all-time highs. In other markets, safe havens are.
  2. In the Forex market, the Japanese Yen has been the strongest major currency since today’s Tokyo open, while the New Zealand and Australian Dollars have been the weakest. The EUR/USD currency pair remains in focus as trend traders will still be interested in being long of this currency pair. The USD/JPY currency pair is also in a valid long-term bearish trend, with many analysts having faith that the Yen will strengthen further over the coming months as the Bank of Japan continues to move away from its old ultra-loose monetary policy.
  3. Gold and Crude Oil are trading lower, as most commodities look weak.
  4. There will be two high-impact data releases today:
  1. Swiss CPI (inflation) data, which is widely expected to show a month-on-month increase of 0.1%.
  2. US ISM Manufacturing data

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Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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