Published: April 10, 2019 3:00 pm est
by Tom Kadale,
Contributor Market Analyst
NewsmovesMarketsForex
Spring is here! …and FX markets have been as exciting as watching the lawn grow. Here’s why… Today markets are at a stand still awaiting Powell’s visibility on US interest rates.
With the IMF’s recent GDP downgrade, a dovish outlook is expected for the rest of 2019. Coupled with this uncertainty Theresa May’s never ending request to extend Brexit deadlines is further weighing on traders. Uncertainty has led to blame games. EU officials are accusing the Brits of sabotaging May elections with more Brexit malaise.
The Franco-German core is at odds. Merkel remains in favor of an extension, while Macron does not. Within the EU Italy’s Deputy PM, Mateo Salvini has initiated a new conservative group within the EU. Right wing groups from Spain, Denmark, France and others are collaborating.
Their presence will further weaken the EU in the eyes of FX traders. With so many conflicting forces in tow, I’ve remained on the sidelines with FX. Yesterday morning, while planting new grass, I decided to test the waters with a BUY for EURCHF. It was a slow trade that took longer than expected to close out. The EMA55 uptrend line above my Stop Loss gave me the confidence to place the trade. Despite the positive outcome, I remain cautious.
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From the RagingFX Trading Desk… Tom Kadale, Forex Algorithm engineer RagingFx.com and Guest Contributor Market Analyst for NewsmovesmarketsForex
