Yesterday offered the forex traders many unique opportunities to see nice profits. The EUR/USD pair fell about 160 pips, the GBP/USD gained about 180 pips, and the USD/JPY saw a sharp drop, followed by similar rise – offering traders the ability to gain from both the uptrend and the downtrend.
The more exciting trading took place in the commodities markets. Gold saw a very abnormal bearish session, which included a 4,000 pip free-fall. Crude oil saw a sharp depreciation as well, dropping from $92.00 a barrel to $88.35.
Today, a heavy news day is expected, and has the potential to either erase yesterday’s movements, or to extend them.
Here are today’s leading news events:
• 13:15 GMT, U.S. ADP Non-Farm Employment Change – This report is the ADP’s forecast of the change in the number of employed people during the previous month. This forecast is considered to be quite reliable, and thus tends to have a large impact on the market. A better-than-expected figure is likely to support the dollar.
• 15:00 GMT, U.S. Non-Manufacturing Purchasing Mangers’ Index (PMI) – This is a survey of about 400 purchasing managers, who are asked to rate their current business conditions. If the end result will be higher than 55.6, the dollar might strengthen as a result.
• 15:30 GMT, U.S. Crude Oil Inventories – This report measures the change in the number of barrels of crude oil held in inventory by commercial banks during the past week. The projection is for a decline of 1.4M barrels. Such a result is likely to support crude oil prices.
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Yan Petters is a top analyst of market trends who specializes in the forex market. Yan has a reputation for composing highly accurate analytical reports, both technical and fundamental. Yan Petters' ground-breaking perspectives on currency trends are highly valued by his colleagues and clients and has been a featured author on a number of influential trading sites. Yan Petters is an author for the ForexYard blog
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