What to expect from the currency markets an hour before the opening session

After the terrorist act in London, it is possible that the currency markets will open with gaps. We expect stronger JPY, USD and Euro.  The riskier currencies like the AUD and NZD may start the session much softer. The futures of the US indices and Asian indices may open lower as well.

After the USD fell on Friday last week after the release of the NFP data, now it is possible to see a correction and leg higher, but the fundamental remains short and we remain bearish against the USD in the short term or least until the next FED meeting later this month.

During the Asian session we await economic data from China and Australia and if the data are worst than expected, it is possible to see lower prices for the AUD. Also we will expect the reaction of the Asian markets in regards to the NFP data from the USA. There is a possibility that the Asian indices may open lower and then move higher later on during the session, if the positive sentiment returns to the markets. It all depends on how negative is the perception of the traders and investors towards, the terrorist act that happened in the UK.

Trader - Senan Fuchedzhiev

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