Into The U.S. Close: It’s Tight Out There

Posted Monday, August 7, 2017 by
Shain Vernier • 1 min read

The word of the day is “range bound.” As we head towards the U.S. session close, tight daily ranges are the norm across many asset classes. In these situations, patience is a virtue.


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Looking Towards Tomorrow's Session

There are a few scheduled economic releases coming up during the European session that may create some volatility facing the forex majors:

  • Imports, exports and the trade balance for Germany

  • Imports, exports and the trade balance for France

Pre-U.S. session trading may be influenced by tomorrow’s U.S. economic releases:

  • Redbook Index

  • IBD/TIPP Economic Optimism Index

  • JOLTS Job Openings

In total, these economic news items are only moderate market movers. Positive trade balance numbers out of France and Germany will be good for the Euro. The U.S. metrics are likely to have little impact on the USD after last Friday’s employment stats.


How Tight Has It Been?

Many markets are currently under heavy rotation. Of course, anything can happen at any time; that is the nature of the markets.

It is important to stay on your toes and not fall asleep. Here are a few of today’s ranges:

  • EUR/USD: 43 pips

  • USD/CHF: 35 pips

  • USD/JPY: 27 pips

  • December Gold Futures:   43 ticks

The beauty of tight markets is that they will eventually open up. The key is to not overtrade. If you feel inclined to trade, adopt an appropriate strategy for the market conditions.

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