Daily Analysis by VTFX

[VTFX]

30th March 2017

The dollar was flat on Thursday after weak reports on euro zone inflation took the edge off news that U.S. President Donald Trump's administration was studying ways to "penalize currency manipulators" to fulfill a campaign pledge.

News reports suggest the Trump administration is "assessing the scope of its power to penalize countries whose currencies it believes are undervalued," which could drive the dollar lower. The report provided no details about how the administration would do this.

While campaigning, Trump promised to label China a currency manipulator on his first day as president, but so far has taken no action.

Sterling hit a day's high against the dollar on Thursday as the dollar fell broadly.

It is already up on the day as investors bought back into the currency after Britain lodged its formal request to leave the European Union, benefited from the greenback's weakness.

We see the value of Sterling as overvalued so the recent spike has given us great opportunity to build shorts.

 

[VTFX]

3rd April 2017

The euro hit a three-week low against the dollar as mixed economic data coming out of Europe added to existing worries about political risk in the continent, driving investors to sell the single currency.

Sterling slipped after data showed British manufacturing lost momentum last month, the latest sign the economy may be running out of steam after its surprising resilience in the wake of last year's Brexit vote.

There is a lot of news out this week so there could be some moves

 

[VTFX]

4th April 2017

Forecasts have been accurate thus far.

Apart from a few pairs, there is not much movement. Be patient and wait for volatility to return.

 

[VTFX]

5th April 2017

The dollar edged up against the yen in European trading on Wednesday but fell short of broader gains after North Korea test-fired a ballistic missile ahead of a key meeting between U.S. and Chinese leaders.

Volume remains thin so not much change. It is important to stay patient and not go looking for trades when they are not there. Let the market come to you, don't go chasing it!

 

[VTFX]

11th April 2017

Patience is required in here at the moment. Markets have been choppy and many correcting. As a write this there is potential for them to start breaking down but I want to see some nice clean breaks with impulsive price action if I am to consider positioning myself.