USD today is not going to have a very easy day. Why? Well, it is due that the USD is knocked down from its pedestal and right now is as good a time as any. The knock-down comes from the fact that Asian markets and Asian economics are rallying – Japanese and Chinese data are booming and are not showing any signs of stagnation. This, of course, means that trade war does not have the same effect on Asia as when it first started.
Seems that trades and investors are ready to trust Asia once again even though we are still pretty far away from the end of the trade war. And USD is feeling it. It is also failing as the risk hunger around the world is growing. As a result, we are prepared to leave it as a safe haven and trade something involving more risk.
Today’s volatility is also coming ahead of the ISM Manufacturing PM report, which is a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy. As a result, big companies are perfect to look at in order to understand the real state of the economy. The report is also coming after several days of rest for the American markets, so there are all the chances that trading is going to be a little bit sleepy today.
Sleepy or not, you need our trading signals to understand what to do next.