Hi guys, Pierre just let me know that he is not feeling very well which is obviously worrying with the current Covid situation in South Africa. Having said that he and I are prone to “man flu” so let’s hope it’s nothing more than that! There is some Forex news you can prepare for and some forex news you cannot avoid and prepare for…
I have made a quick video of Earth & Sky setups for the week ahead. A cautionary note about some of the setups (pivots in the way) and how to trade around them using M3 for entries.
Forex news avoidance and preparation
Also you will have seen that the Nzd suddenly gained strength today. We always plan trades so that we can tiptoe around major news announcements. What nobody can plan for is an off-the-cuff comment by some politician or finance dude. Last week the Nzd fell because they had one case of Covid! and the RBNZ did not raise interest rates as was expected.
“The Reserve Bank of New Zealand kept interest rates steady last week mostly because it would have been hard to communicate the case for a hike on the same day the country was locked down, Assistant Governor Christian Hawkesby said on Tuesday. Hawkesby also said policymakers considered a 50 basis point hike and that future policy decisions were not going to be tightly linked to lockdowns. His comments, in an interview with Bloomberg, helped the New Zealand dollar extend a recent bounce to touch a one-week high of $0.6932.”
My Euro/Nzd lost which is annoying, BUT There is nothing we can do about random speeches, Tweets etc. Those who were trading through the Trump 4 years will recall this was a weekly and often daily occurrence!
The best advice is to leave the Nzd alone for now at least. See the video: