Another week of trading resumes today and here is my weekly forex analysis on the 7 majors and a few exotic currency pairs. I Cover the technical aspect of the markets only in this above video.
The U.S dollar held above a recent 1-1/2 month trough against a basket of major currencies on Monday as investors awaited details on a new round of U.S. tariffs against China, which could further sour relations between the two giants. Trump has gone on to say that there will be another $200 billion in tariffs against China which is certain to cause some huge volatility in the markets this week.
Investors and traders continue to be bullish on the greenback with net long positions of $19.2 billion, according to calculations by Reuters and Commodity Futures Trading Commission (CFTC) data released on Friday. The CFTC report also showed the major positioning changes were in the euro, with net longs increasing. Net shorts in sterling and the Swiss franc also declined.
The euro and sterling each rallied last week on regarding developments on terms for Brexit, paring some safe-haven demand for the dollar. This week we will see more negotiations between Britain and the European Union with the first of three Brexit summits, where EU leaders hope to settle an agreement within the next two months over the terms of Britain’s departure. Look for volatility in those pairs when you are trading this week. There could be some quick sharp moves which will net you some good profits provided your risk management is spot on.