The EURUSD moved up to test its Asian session high, pulled back and closed above it, as the U.K. session got underway. A long entry was taken risking 7 pips for a potential 32 pips to our daily target at 1.1120. As price moved up, we took the risk out of the trade by moving our stop loss to a profit stop.

The market continues to be very volatile as the Brexit headlines appear throughout the day. Price surged higher (and just as quickly could have surged lower) and our trade was closed at our target.

The Brexit agreement that Prime Minister Johnson wants so dearly is not quite there yet. The E.U. wants the final legal text to scrutinize and the DUP party still has some reservations before they are willing to consent with the PM. If an agreement with Brussels occurs then the U.K. Parliament will convene on Saturday to vote on it.

The good news is the U.S. – China trade truce is still holding.

Later today China GDP and industrial production will be closely watched. Friday is light on economic news and Brexit progress will be the focus for many traders.

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!

Trading remains volatile as headlines can potentially cause 50 to 100 pip moves very quickly in the current market environment.

Today after moving down in the first half of the U.K. session, the USDJPY found a bottom around 108.15 and began to move higher in advance of the U.S. Open. A long was taken risking 13 pips for a potential 59 pips to our daily target at 108.87.

It’s not uncommon to see some profit taking before the U.S. Open, but with a “risk on” sentiment today and a low risk entry, we reduced the risk even more by quickly moving our stop loss up to the low of the candle just before the open.

The trade worked well with our daily target reached – closing the trade in advance of the U.K. close.

Volatility will continue as the Brexit deadline of October 31st approaches and the GBP can accelerate in either direction on a headline. Although the markets have been optimistic regarding the U.S. – China trade talks since last week, this too can change on any given day.

Good luck with your trading!

Two major concerns for the markets have persisted this year… the U.S. – China trade talks and Brexit. As the deadline approaches ever nearer this month for Britain, there remains little progress toward an amicable solution with the E.U. On days of optimism, the GBPUSD rises and on days of pessimism the GBPUSD declines.

Today after the first hour of trading in London, the optimism was not there. A short was taken risking 20 pips for a potential 62 pips to our daily target at 1.2200. Price at first pulled back against us, but then moved lower. In the hour before the U.S. open, the pair found some buyers causing our profit stop to be hit, before price moved down to our daily target.

As the U.S. session got underway, the sentiment of the markets was one of “risk off”. This made the USDJPY look like a nice short opportunity. With further threats coming from the White directed at China, the trade looked like it might be a good one until a headline suggesting that China was sending a large delegation to Washington implied they were not offended and hope resurfaced for favourable trade talks once again, which caused the USDJPY to stop and reverse hitting my 20 pip loss.

This is the currently reality of trading in this market. It’s not the economic news releases which we can trade around that will hurt us – it’s the headlines popping up and uncertainty around the two issues that have weighed on the markets all year. The markets are very volatile and many large asset managers are sitting on the sidelines currently in cash until more is known.

I am being extremely cautious, keeping positions smaller than usual, with reasonably tight stops and locking in profits quickly… before an unforeseen headline can evaporate them.

Good luck with your trading!

The EURCAD has been quite active and with oil higher today early in the U.S. session overlap and the Euro weakening a short was taken risking 11 pips for a potential 106 pips to our daily target at 1.4576.

A glance over that the EURUSD helped confirm the Euro direction was down. As price moved lower, we protected our profit by lowering our stop loss and a retracement just before the U.K. session ended closed our trade.

It will be interesting to learn what the U.K. court decides today regarding the proroguing of parliament by Prime Minister Johnson and how the GBPUSD reacts.

It has been curious seeing a very muted reaction thus far from President Trump regarding the oil attack on Saudi Arabia. Although the president continues with his verbal assault on Fed. Chair Powell… who lowered rates by 25 bp yesterday – as already priced in by the market.

Friday is light on economic news with Germany reporting PPI and Canada reporting core retail sales.

Good luck with your trading!

I can’t remember the last time I took a long on the GBPUSD. Brexit is not behind us, but the charts looked very good today for a move up to the 1.2500 area.

A long was taken early in the U.S. session risking 20 pips for a potential 71 pips to our daily target at 1.2491. The news calendar was light and the pair found more buyers as it climbed to test its Asian session high. This level was tested and retested before price moved quickly up to our daily target where the trade was closed.

A close above 1.2500 today is bullish and the 1.2735 area become a target to test going forward. With negative news regarding Brexit or military intervention against Iran, the pair is likely to move lower…beginning with a test of the 1.2400 figure.

Tomorrow the U.S. is expected to lower interest rates by 25 bp and traders will be listening closely to Fed Chair Powell’s comments regarding any concerns for the U.S. economy that would suggest another 25 bp cut or more by year end.

It will be interesting to see what President Trump decides to do regarding the strike on the Saudi oil facility. Oil is off its highs as the Saudis are expecting to be back up to capacity within a few weeks…if not by month end.

Good luck with your trading!