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