The market is pricing in a 75% chance of a U.S. rate cut of 25bp at the end of the month. Disappointing retail sales and core retail sales today added to USD weakness.
After the AUDUSD made a quadruple bottom and began to move higher, a long was taken risking 9 pips for a potential 41 pips to our daily target at .6772. Despite some tension between the U.S. and China regarding Hong Kong, the commodity currencies strengthened to the USD, as did the EUR and GBP.
Price moved upward testing yesterday’s low before moving higher to test its Asian high as we exited the trade at the U.K. close.
Many traders had their eyes on the GBPUSD, EURUSD and EURGBP as we await further Brexit news.
There is still lots of time for tweets before the U.S. – China trade deal is potentially signed mid November.
Good luck with your trading!