The market is still confused
Skerdian Meta • 1 min read
On Friday we saw some nice price action in the Forex market. Yellen blabbered a few words which the market took as bullish and the USD enjoyed good demand the entire day. In my opinion, the market got over excited on nothing more than a constatation from the FED chief, because there was nothing to indicate a September interest rate hike. But the forex market got something to chew on and the September rate hike expectations jumped to 42%.
Since then we haven´t had a clear direction though. I feel that the market is slightly bullish biased towards the USD because the downside seems just that little tougher than the upside in the USD index. Still, Friday´s USD surge has almost run its course.
The USD bulls are finding it hard to push any higher. Yesterday they made a weak attempt, but at least they pushed a little higher. Today both sides seem balanced, although biased to the upside as I said. At least, this market preference gave us a handful of pips, because the GBP/USD forex signal that we opened yesterday evening hit the take profit target overnight. If the market is to change the mind today, it has to do on its own because there isn´t any economic data release on the calendar worth the paper it´s printed on.