- No economic data points today from Europe or U.K.
- U.S. and Canadian Bank Holiday today. No upcoming major economic releases.
With an empty economic calendar, you’d think volatility would be totally dead, but there were a few bones thrown out for forex traders to take a nibble on.
Probably the most notable move was a rally in the comdolls right from the London session open. There doesn’t seem to be a direct catalyst other than a shift towards risk-on behavior, which might have been sparked by more weak Japanese data during the Asia session. Weak data gives support to the Bank of Japan’s fresh increase in monetary policy stimulus, which not only pushes up risk taking, but also a reduction in demand for “safe haven” currencies like the Japanese yen. So, it’s no surprise that the biggest movers on the session are yen pairs, some of which hitting new monthly high’s on today’s move:
AUD/JPY is up 98 pips (+0.99%) to 100.02, NZD/JPY is up 76 pips (+0.86%) to 89.85, and USD/JPY up 106 pips (+0.93%) to 115.90
No economic data releases from Canada today due to the Remembrance Day holiday, nor from the U.S. which is on holiday for Veterans Day. The U.S. and Canadian bond markets will be close today, but the equity markets will be open for trade so forex traders may take cues on risk sentiment from those price action there. With equity markets closing higher in Asia, and Europe and U.S. equities looking up, this means that we’ll possibly see more risk-on moves from the comdolls. And we may also see movement from the British pound as currency traders get ready for tomorrow’s major U.K. economic events.
Stay frosty and a big salute from BabyPips.com to all veterans who have served their country well! Thanks!
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