US Small Caps: Bust or Boom? Forex Trading Long GBPCHF. Watch GBP, JPY, and USD on Interest Rate Decisions this Week.
Will We See a Santa Claus Rally on the Dow Jones this Year?
In today’s GCI Market Outlook let’s take a look at Forex Trading on USDJPY, the Dow Jones Industrial Average, the Russell 2000, EURCHF, GBPCHF, and EURGBP.
In a surprise rumour, the Bank of England may not raise interest rates this week.
How will that affect the pound?
The charts show us weakness in GBP pairs but this may change this week if the Bank of England votes to leave Interest Rates where they are.
The forecast says just that.
EURGBP opened with a huge gap this morning but the gap was filled quite quickly.
If we look at the 4-hour and daily charts, the prevailing direction is bearish and if GBP gets stronger, we may be looking at a nice short trade.
Also, the stochastic oscillator is very overbought.
We see a long opportunity on GBPCHF with price action at the lower trend line.
The stochastic oscillator looks a bit flakey but it is currently oversold.
If you look around various charts, you will see quite a few huge weekend gaps around the Monday morning opening in New Zealand.
You may think that these are great trading opportunities and sometimes they are.
However, if you try it you will notice that the spreads are so wide, you may be quite disappointed when you open a trade. Beware.
We were looking at a long trade last time on the DJIA, buying the dip, as the other major indices are bullish.
The dip in the Russell 2000 index of small-cap companies, however, may be in doubt if the next US president follows through on his tariff threats.
Watch this space and we will keep an eye on price action and the news.
Getting back to the economic calendar, we have an incredible amount of opportunities including an Interest Rate Decision from the Bank of Japan.
That’s all for now.
CFDs and FX are leveraged products and your capital may be at risk.
Latest Analysis
- Forex Trading Interest Rates this Week. US Indices Higher on US China Trade Deal! October 26, 2025 10:03 PM
- Brent & WTI Crude Higher on Russia Sanctions. Forex Trading Gold XAUUSD October 24, 2025 07:11 AM
- Forex Trading NASDAQ at All-Time Highs. Silver XAGUSD Mixed Signals. October 21, 2025 05:17 AM
- Forex Trading Precious Metals: Silver, Gold at Record Highs. US Indices like S&P500 Tanking Again! October 17, 2025 05:30 AM
- Forex Trading the TACO Rollercoaster! Volatility on S&P500 & NASDAQ. Gold XAUUSD, Silver XAGUSD Rocketing! October 14, 2025 04:33 AM
- Gold XAUUSD Pushes Past $4,000! Forex Trading Silver XAGUSD at $51! WTI Crude Oil Retreats. October 10, 2025 05:44 AM
- Watching for Reversal on WTI & Brent Crude? Forex Trading USDJPY Gap. October 06, 2025 05:45 AM
- US Government Shutdown: NFPs Today? Gold XAUUSD to Climb Further? Forex Trading WTI at Support. October 03, 2025 01:04 AM
- Forex Trading Short AUDUSD? Silver XAGUSD in Ascending Triangle. Gold Flying! September 30, 2025 05:30 AM
- USDCHF at Upper Trend Line. Forex Trading Gold XAUUSD in Symmetrical Pennant. September 30, 2025 05:24 AM
Open an account in minutes
Trade on our award-winning platforms with ultra-fast and ultra-secure execution.
OPEN AN ACCOUNT