The same manner of price action has been reflected at the opening Asian session with the USD index DXY recovering a higher opening @97.45 basis point from a closing level @96.90 after the US session last Friday. The ripple effect correspondingly seen with the European majors including across the Asian board as the Japanese Yen opened @104.10 from Friday's close @103.09. Its correlated Nikkei 225 subsequently opened @17126 from 16802 low from the previous week's trading that closed @16905 slight recovery at the end of the session.
Cloud Chart Comparison: USDJPY Overlay NI225
These counter trend price reaction is again fundamentally motivated. As we have stated that such reports from then had been considered a political disruption that will eventually clear the air while market sentiments adjust towards the incidents arising from political campaigns. Nevertheless, with the outstanding figures relative to the JOBs & employment rate are solid grounds enough for the Federal Reserve in moving forward with a rate hike in December.
With that said, without any unforeseen fundamentals after the November expectations of price adjustments seen on the first week of November trading would be considered a corrective phase establishing probable low levels with a strong expectations of a continued directional trend ahead of the holiday season.
These moves will ripple thru the US Session with increasing market volatility before and after the US elections. Furthermore, a probable delayed price reaction from the Jobs figure may be expected within the week's trading.
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