Forex Markets Exhausted After The Last Few Days!

After the fireworks of the last few days, it was no surprise to see virtually all the markets moving in congestion phases including forex which has seen dramatic price action and intraday swings based on reversals in risk sentiment. Most notable of these were the moves triggered by the US President and his tweet over China trade deals, followed by the equally dramatic move for the NZD in response to the surprise 50bps move on interest rates.

In the London forex session once again the currency strength indicator revealed this lack of direction on the faster charts clearly, and it was only later once London had opened currencies and pairs began to move. Of these it was the GBP, the Euro and the yen complex which caught the eye, with the currency matrix and the currency array confirming broad sentiment and strength of trend clearly.