All Trade Ideas and trading scenarios found on FX360.com are hypothetical. FX360.com has not placed these Ideas in a live trading environment. Forex Trading involves high risks, with the potential for substantial losses that exceed your initial deposit and is not suitable for all persons. Past performance is not necessarily indicative of futures results.

Light News = Light Trading

Last updated 7/9/2012 5:15 PM EST (GMT -5) 0 Comments - Add your comment

• Share this:

Neal Gilbert

Technical Analyst, GFT

Follow @FXexaminer

Light News = Light Trading

Trading across most markets in North America was rather light today as there were no large scale scheduled events to drive opinion. After last week’s spate of interest rate decisions and job numbers, it seemed as if the market was taking a little breather before more frenzied action later this week. Among the minor news events today, there were four FOMC members either making speeches or talking to media over the last 24 hours, half of them being voting members. Suffice to say the three doves remained dovish and the one hawk remained hawkish, signaling nothing new in their monetary ideology. Of particular interest though, is that the one hawk, Richmond Fed’s Jeffrey Lacker, is the only historically hawkish voting member on the FOMC board. Therefore, the lone dissenting voice for raising interest rates will most likely be drown out by the rest of the voting members, making monetary easing that much more likely. If US economic figures follow the trend of Non-Farm Payrolls from the last three months, more Quantitative Easing may become inevitable.

Consumer Credit Increase

On the brighter side of things, US Consumer Credit Change for the month of May significantly beat estimates, more than doubling the $8.5 billion consensus to pull in $17.12 billion; the third highest monetary increase since 2007. Past figures that printed over the $15 billion threshold signaled good things for the US economy as individuals were confident enough to borrow money, and institutions were confident enough to lend. If this number rings true, watch for consumer sentiment indicators released this later week, IBD/TIPP and UM/Reuters, to beat expectations.

Looking Forward

The Asian trading session looks to be almost as barren fundamentally as the North American session. Up next is New Zealand’s NZIER Business Confidence which has printed in positive territory for 9 of the last 10 releases. Being that this figure is a quarterly release and New Zealand’s biggest trading partner, Australia, was cutting rates due to concerns with China and the EU, this number may disappoint showing a lesser number than previous.

For more intraday analysis and trade ideas, follow me on twitter ( @FXexaminer ) and/or Facebook (FX Examiner).

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Futures & Forex, Ltd. (“GFT Markets”) and FX360.com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

The views of the authors and analysts are not necessarily those of GFT Markets, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. GFT Markets and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

Loading...

About The Author

Neal Gilbert, an avid follower of the markets, began working at GFT in 2006, educating new and experienced traders in an easy-to-understand manner. His focus has been teaching common technical indicators, risk management, and sharing his favourite trading strategies. His Braving the Rapids strategy guide can be found on GFT’s website.

Neal conducts live webinars throughout the day, including his” Long and Short of It,” which is a Fundamental Live Market Analysis webinar centred on key economic releases. He also conducts webinars in Basic and Advanced Technical Indicators, Volatility and Risk Management, Trader’s Edge, and Fibonacci Trading and Theory.