background image background image background image

NY Open: That's a wrap

Forex 4 minutes to read
Michael O’Neill

FX Trader,

Summary:  A good start for the larger G-10 currencies turned to a reversal later this session when profit-taking boosted the greenback across the board.

The major G-10 currencies had a good week. The Australian and New Zealand dollars gained 1.56% and 1.49% respectively, compared to last Friday’s New York close. The Canadian dollar rose 1.4%, and the euro increased 1.2%. However, those gains were at the New York open. Since then profit taking has boosted the greenback across the board with EURUSD down 0.62% since the open.

Wall Street erased yesterday’s gains by 15:00 GMT and unlike yesterday, will probably close in the red. That’s because traders have accrued some decent profits this week and there is a lot of event risk ahead, including US government drama and the UK Brexit-deal vote. This morning's US CPI data didn’t have any impact. CPI fell 0.1% due to lower oil prices.

Former US President Ronald Reagan was sometimes called the “Great Communicator.” It is very unlikely that Fed Chair Jerome Powell will be referred to that way. He muddled the message from the December 19 Federal Open Market Committee meeting. Since then, he has been doing damage control, going from saying the Fed would continue to gradually raise rates to: “We are in a place where we can be patient and flexible and wait and see what does evolve,” yesterday. That sentiment echoed what other FOMC members were saying and was almost identical to his January 4 comments. Wall Street rallied all week but may use the weekend as an excuse to book some profits.

Next week should provide plenty of opportunity for traders. The UK parliament vote on Theresa May’s Brexit plan may be the highlight of the week unless President Trump does something stupid. GBPUSD soared Friday helped by an Evening Standard report that Brexit would be delayed. Most pundits believe Theresa May will lose Tuesday’s parliamentary vote. A JPMorgan analyst predicted a 4% GBPUSD rally if, Ms May achieves a surprise victory. Whatever happens, GBPUSD trading will be chaos.

There are plenty of inflation reports on the docket including those from the UK, US, Canada, Eurozone, and Japan. The UK data will be lost in the Brexit drama while the US data might not even arrive because of the government shutdown. Monday’s China Trade data will serve to keep the focus on the Beijing/Washington trade talks.

Chart: USDX 30 minute, 1 week.  Source: Saxo Bank


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
United Kingdom

Support Centre
For existing clients, please click here to request support via the Support Centre.

Have a question about our products, platforms or services? Visit the Support Centre to find answers for our most frequently asked questions. If you are still unable to locate an answer to your question, you will also find contact details for your local Saxo office to speak with a representative.

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.