A terrific session which covered many aspects of forex trading from the fundamental to the technical, relational and finally the political. Forex trading used to encompass three aspects, but in recent years it is the political which is increasingly influencing markets and this morning was no exception as an emollient tone from China sent indices on Globex surging higher on the news, with the AUD/JPY consequently rising also as risk on sentiment flooded the markets as London opened.
Politics was also a feature of the price action for the GBP the previous day, which was overdone on news concerning the British Parliament and once again a terrific pair to focus on was the GBP/AUD.
When considering the fundamentals there are several aspects to consider, no least the business and economic cycle and therefore the context for the release and whether this is likely to have a greater or lesser impact as a result. And don’t forget to check out the trend of fundamental data which as with markets, has it’s own well defined trend and this is certainly the case for ANZ business confidence which has fallen steadily since 2017. It was no surprise to see this decline further. Hence the response was relatively muted.