Delayed US Non-Farm Payrolls Affect on USD? JPY Stronger Post-Elections: Will it Last?

In today’s GCI Market Outlook, let’s take a look at Forex Trading on GBPCHF, the NASDAQ, EURJPY, USDJPY, USDCAD, and EURUSD.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

Looking at USD pairs, we see short-term weakness after a brief period of strength.

The markets may be a bit slow today as we are all waiting for tomorrow’s delayed Non-Farm Payrolls, which always move the markets.

Also, this week, we have US Retail Sales, US Unemployment Claims, and CPI, so the combination of all this will give the Fed some idea of where the economy is headed, especially in terms of the labour force and inflation.

USD weakness looks like this USDJPY chart for most of the major pairs.

However, JPY is stronger right after the elections as confidence returns to Japan.

However, many analysts believe that this strength is short-lived, so we will be watching pairs like EURJPY to see if price action bounces back off this lower trend line.

USDJPY doesn’t have a clear upward trend channel like the other pairs, but we see a very oversold stochastic oscillator on both the 1-hour and the 4-hour charts.

We talked about one index lagging behind others, and we see it again with the NASDAQ well behind the S&P500, the DJIA, and the Russell2000.

There are many reasons for this, but if investors feel risk-on in the markets any time soon, we may see a resurgence.

We also have GDP from the UK and CPI from Switzerland, so you will find a few charts showing bull and bear runs on both currencies.

If the news moves price action against the trend, you may have an opportunity to trade with the trend.

We have been looking at setting up and using Simple Moving Averages on cTrader so now let’s look at Exponential Moving Averages (EMAs).

To set one up, click on the Indicators icon and, under Trend, select Exponential Moving Average.

Set the period you want, the Color, and Line thickness.

An EMA is essentially the same as an SMA but the EMA gives more weight to recent price change so it reacts faster.

Many traders prefer the EMAs as they provide a smoother curve as we can see by comparing these Moving Average Crosses…SMAs vs EMAs.

As with any technical indicator, find what works for you and backtest, backtest, and backtest.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.