Never miss a story from Justin McQueen

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Justin McQueen

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

MARKET DEVELOPMENT –CAD Spikes, GBP Outperforms, JPY Eyes Fed

DailyFX Q2 2019 FX Trading Forecasts

CAD:The Canadian Dollar spiked higher after the latest inflation data surprised to the upside with the headline figure at 2.4%, above the expected 2.1%, while the BoC’s preferred measure also rose above the 2% target. Consequently, this makes it hard for the BoC to follow in the dovish footsteps as the rest of the G10 complex (excl. Norges Bank & BoE). However, while data continues to beat expectations, USDCAD remains locked within its 2-month range, thus CAD crosses may prove better avenues to explore CAD strength, most notably against the Aussie and Kiwi.

EUR:The pre-FOMC lull has kicked in across major USD pairs. The Euro has traded within a 20pip range with price action also relatively stick given the $5bln+ vanilla option expiries around 1.1190-1.1210. The USD is defensive this morning, however, with the dovish bar set high for the Fed, there is a risk that the central bank fails to meet the dovish expectations. If indeed this is the case, EURJPY is vulnerable to losses.

GBP: Modest outperformance for the Pound this morning, which briefly tested the 1.26 handle. UK inflation figures were in line with expectations, however there was a notable jump in PPI figures, raising the risk that inflation could push higher in the near-term. Nonetheless, today’s data is likely to reinforce the hawkish rhetoric from the BoE at tomorrow’s monetary policy meeting.

CAD Spikes, GBPUSD Outperforms, EURUSD Eyes FOMC - US Market Open

Source: DailyFX, Thomson Reuters

IG Client Sentiment

CAD Spikes, GBPUSD Outperforms, EURUSD Eyes FOMC - US Market Open

How to use IG Client Sentiment to Improve Your Trading

WHAT’S DRIVING MARKETS TODAY

  1. Crude Oil Price Building a Base, US Intentions Remain the Key Driver” by Nick Cawley, Market Analyst
  2. Canadian Dollar Technical Analysis Overview: USDCAD, CADJPY” by Justin McQueen, Market Analyst
  3. FTSE 100 Outlook – Rally Has Price Extending into Resistance Levels” by Paul Robinson, Currency Strategist
  4. Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX