Forex Market Trading May19 Aftermath

Forex Market Trading May19 Aftermath - The dollar gained more ground against the majors, gaining 70 pips against the euro and 132 pips against gbp. After the Bank of Japan Monetary Policy Announcement, on which the BOJ decided to left rates unchanged, the yen lost 76 pips against the dollar.

Forex market trading yesterday was basically just one big slide of the majors against the dollar (see chart - click on it to enlarge). The ZLR that I reported about earlier here forex market trading may19 preview, didn't follow through, but as I said I had some reservations about entering. The slide in yesterday's forex market trading began from the very start of europe open. I was looking to enter long, but the downtrend in euro just wouldn't stop. See how on the 15 minute chart the euro stayed below the ZL basically the whole day. When it broke the ZL at 17:45 CET (11:45 EST) it was too late in my opinion to enter long. The week close was too close, just a few hours away, and the didn't like the risk of holding that trade overnight, especially with the recent dollar gains. After that point the euro gained 30 pips in forex market trading to close at 1.2777. The gbp closed at 1.8797. The yen closed at 111.68.

Forex market trading this week saw the dollar gain against the euro and the yen for the first time in four weeks. It was also the first weekly gain against gbp after six loosing weeks. The US inflation data –and jawboning from French finance minister to a lesser extent —served as an effective means of slowing down the dollar decline. This week'’s forex market trading bounce in the dollar wasn't because of improvement in the currency's prospects but a drop in the value of commodities denominated in US dollars. Still the dollar has it's share of problems: trade deficit, central bank diversification, near end to Fed hikes, and possible yuan revaluation.

On the other side of forex market trading, we have The Bank of Japan expected tightening. The European Central Bank and The Bank of England also may raise interest rates. The future doesn't look promising for the dollar.

That's all for today's forex market trading may19 aftermath.