Weekly Preview: Trade Ideas for the Week

Posted Sunday, October 8, 2017 by
Rowan Crosby • 2 min read

Morning traders and welcome to another week on forex markets,

Last week came to a big end as we waited on non-farm payroll numbers. Unfortunately for the U.S., it wasn’t pretty and the number of new jobs was far less than anticipated. This meant the strong USD fell, however, there’s no doubt the momentum is still to the upside.

Crude Oil is in focus in early Monday trade as Hurricane Nate bears down on the U.S. Last week we crossed below the psychological $50 mark and oil was looking bearish. As trade opens for the week, we will get a better picture of the fallout for oil traders.


Big Items This Week

Fed FOMC Meeting Minutes

After leaving rates unchanged, we’ll be able to get a closer look at what the thinking was and if in fact, rates are due to be raised ahead of schedule.


U.S. Inflation Data

CPI is out and this is going to be important. If CPI can continue to creep up then the Fed will have a strong case to raise rates.


ECB President Draghi Speaks

It’s a quiet week for top-tier European data, and this is the only chance we have to see if we can get any hints on monetary policy.


Top Trade Idea

For me, the focus still needs to be on the U.S. Dollar. We’ve turned the corner and now as you can see on the U.S. Index Chart, momentum is clearly to the upside. I feel we can use the weak employment data as an opportunity to position ourselves long the USD. So that means that currencies like the Euro will continue to decline.


U.S. Dollar Index – Daily Chart.


Commodity Currencies are Crashing

Last week the AUD and NZD tanked, to say the least. On the back of a strong USD, as I mentioned, Even the CAD which had been strong has begun to give back much of its gains. This week I’m looking to capitalize on that trend and ride the USD strength.

So for the most part I am looking to be short the AUD/USD and NZD/USD and long the USD/CAD.

Here’s to another big week forex traders. Good luck!

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