The pervasive indecision this Monday continued into this Tuesday morning in the trading in Forex patterns. Traders have hesitated to make any big moves because of important upcoming events. An important announcement coming soon from central banks will have significant implications for the market. When it comes to Europe, upcoming Consumer Price data for August will have far-reaching consequences. Data coming from the US will have implications for the performance of the US property market. Then, if we look at Canada, there is the upcoming CPI, indicating performance in August.
In terms of appetite for risk, it has improved marginally. This is likely due to lower inflation affecting the US dollar this last Monday. The index for the US dollar has shown it lower against a number of currencies, going down 0.25% by a few Forex pips. It has, however, managed to find a stable point and does not appear to be lowering any further. This Tuesday morning has only shown a sideways movement on the dollar index. US Treasury bond yields for 10 years showed a drop, going down 0.60% to 4.30%. As we would expect, this put additional pressure on the dollar.
Forex Patterns: Currency Performance and Oil Price Impact
In terms of data on Forex day trading, the USD/CAD pair showed a drop this Monday, in part due to problems surrounding oil prices. Prices for oil barrels have been climbing, now going to a record for this year at $92. Similarly, the euro has won out against the dollar. The EUR/USD stabilised around 1.070 this Tuesday morning.
The only significant currency that has not benefited appears to be the AUD, according to Forex patterns. The AUD/USD pair has been trading sideways, around 0.645. This is likely due to the RBA’s decision not to shift their current interest rate policy. The bank says it wants to see how the current policy will affect the economy’s trajectory.
