Are you ready to go on a shopping spree this Black Friday? Find out what’s hot and what’s not in the forex market!
What’s Hot: British pound, Swiss franc
A quick look at forex charts would reveal that the pound is one of the strongest performers these days, boosted mostly by relatively strong U.K. fundamentals. Even though the BOE clarified that they’re not ready hike interest rates just yet, there seems to be no stopping the pound bulls from betting on the British economy. Just take a look at Cable’s strong upside breakout from its 300-pip range!
Another currency that you might want to pay closer attention to is the Swissy. Although this little one is often overlooked because of its tendency to stay stuck in ranges, it is proving that it can pack a punch against the other major currencies. At the moment, AUD/CHF seems to be on the verge of a breakdown while NZD/CHF has already made a pretty convincing one.
What’s Not: Japanese yen, Commodity currencies
Talk about getting slammed! Yen pairs have been on a tear these past few weeks, as the BOJ keeps reiterating its plan to keep its aggressive easing programs in place. In fact, BOJ policymakers have also mentioned that the central bank is ready to ramp up stimulus if necessary, and it doesn’t help the yen’s cause that these officials are starting to voice out concerns on spending and inflation.
Similarly, the comdolls have been getting battered recently, thanks to the slide in oil and gold prices. In particular, the Australian dollar and New Zealand dollar are tumbling down the charts because of jawboning from the RBA and RBNZ. Apparently, these currencies are trading at historically high levels which isn’t good for their export industries.
I hope this quick forex shopping guide can help you score good deals before this week comes to a close. Of course, don’t forget that the tides could turn really quickly in this market so y’all better practice proper risk management at all times. Be careful of potential weekend gaps as well!