US Dollar Bound to See Weak ISM, NFP Results - What Impact Will They Have? Euro Balancing The Influence Of Bailouts And An Expected ECB Rate Cut Japanese Yen May Fall As Seasonal Forces Grip the Forex Market British Pound Forecast Bearish Ahead of Bank of England Cuts Canadian Dollar May Fall As Labor Market Weakens
- Euro Remains Heavy, But 1.25 is the Level to Watch Ahead of Thursday’s European Central Bank (ECB) Rate Cut - British Pound Holds Above Support at 1.4805, Downside Risks Loom - Japanese Yen Strongest of the Majors as Risk Aversion Sends Dow Down 7.7%
When looking for range trades, it is always wise to position yourself with any dominant trends. There is a clearly a greater, bear trend holding over GBPUSD, which makes our suggested more risky.
The RBA is expected to cut their benchmark rate by 75 bps at their policy meeting as the Australian economy is heading toward a recession. There has been some speculation that the central bank has some concerns that if they lower interest rates too far that upside inflation risks will re-emerge.
After an extended holiday for the US that drained FX liquidity, the market is back to capacity; and with it has come risk aversion. An RBA rate decision presents top event risk for Tuesday's session.