FX markets drift, looking for direction
The FX Market currently appears to be at something of a crossroads. With no clear trend in sight, the market is being pushed around within fairly narrow ranges by commercial interests. The US dollar appears to be a little soft against some currencies, firm against others. Sterling is in the same boat, looking good against the Canadian dollar (GBPCAD), but vulnerable against the Rand (GBPZAR).
It’s difficult to see any logic in this, but this aimless pushing and pulling in fact tells us that the market has lost its direction, and is now entering a phase of consolidation until some new stimulus gives the market. The US will not however, be releasing the much-awaited Non Farm Payroll figure this week. Usually rolled out on the first Friday of the Month, those awaiting the March figure will have to wait until the 9th.