During today’s webinar, we discussed price behavior among emerging market assets and why EM currencies benefit when investors seek higher yielding risk assets over low yielding safe haven assets.
In the US afternoon, Banxico (Mexico’s Central Bank) moved to cut their benchmark interest rate by 50 basis points, from 6.00% to 5.50%. This decision initiated a mild sell-off in the safe haven JPY, as the idea of more global stimulus spawns a riskier appetite among investors. But, this risk positive sentiment may taper throughout the Asian Session, as on-going concerns about economies reopening during a pandemic is putting pressure on speculative demand, along with the mixed & muted Chinese economic data, which favors a slight bias for the safe haven play.
In today’s session, we also taught on how to trade triangular consolidation breakouts and analyzed price action in GBP/JPY, USD/MXN, USD/ZAR and CAD/CHF for trade setups that could be forming in the market.
Marvin Perry has been an active trader within the Forex market since 2010. He attended the University of Illinois in Urbana/Champaign, and graduated in 2002 with a double major in Cell and Structural Biology and Chemistry. He currently serves as an FX instructor & Quantitative Analyst for the Forex Anatomy Private Trading Community called "The Lab", where he conducts live weekly trading webinars & instruction on Fundamental Analysis & Inter-Market Interpretations of dynamic asset classes and their influence on currencies.