Anil Panchal · @FX_Anil
20th Aug 2014 from TwitLonger
Daily Fundamental Dose: 20-August-2014
Hello Traders….
Better Housing Numbers coupled with continuation of geo-political crisis kept on supporting the US Dollar strength for the second day of the week. The greenback is trading near important levels against majority of its counterparts, like EUR, NZD, GBP, JPY and AUD. Should the current strength of the US Dollar results into the sustained breakout of such critical technical levels, the US Dollar is vulnerable to witness heavy strength.
For the day, UK BoE MPC voting on Asset Purchase Facility and the Official Bank Rate, even though carrying no change expectations, are likely to be closely observed by the GBP traders. Should any of the MPC members support the change in the monetary policy or more importantly the interest rate change the GBP is vulnerable to re-gain its strength. The Canadian Wholesale Sales and the FOMC meeting minutes are also key to fuel volatility into the market during the rest of the day. Market players are awaiting signals for the near-term rate hike by FOMC, which can provide heavy strength to the US Dollar.
Moreover, the geo-political crisis are again on the course and kept on generating uncertainty into the market and fuel the safe haven demand of the USD and JPY together with precious metal to some extent.
It is advisable to trade with the trend and the buy the US Dollar rather than taking contrarian trades. However, being too optimistic isn’t a vice choice as many of the important events are scheduled to release today.
Have a pip-full day…..