The U.S government shutdown continues, but Wall Street had a positive day of trading before going into the weekend.
A coalition deal appears to be in the cards for Angela Merkel in Germany. And the Bank of Japan will release its monetary policy decisions tomorrow.
The U.S government shutdown continues. However, with the threat of a political crisis before going into the weekend, Wall Street responded with a positive day of trading. Data will be extremely light from North America. Canada will issue its Wholesale Sales figures, but Washington D.C is likely to be the talking point among traders as politicians play the ‘blame game’. The U.S Dollar has remained within its weaker stance early today.
The Bank of Japan will issue its monthly pronouncements early on Tuesday. Asian investors have been cautious today but nevertheless, have produced fractional gains. The Bank of Japan may confirm another term for Governor Kuroda tomorrow. And the Yen has been steady this morning as it trades near 110.85 against the U.S Dollar.
Reports from Germany indicate Angela Merkel is getting close to putting an official seal on the fourth term as Chancellor. Forming a coalition government has not been an easy task for Merkel this time around, but it appears negotiations are entering their final stage. The Euro has remained strong and is above 1.22 against the U.S Dollar. Traders should keep in mind the European Central Bank will deliver its monetary policy statement this Thursday.
Taking into consideration a large number of potential risk events which could take place near term, Gold has been tranquil and is around 1331.00 U.S Dollars an ounce. The precious metal could attract buyers who believe the commodity will retest highs made early last week.
German Central Bank Publication, Canadian Wholesale Figures Coming
Canada’s Wholesale Sales data will be issued at 13:30 GMT and forex traders will pay attention.
Yaron Mazor is a senior analyst at SuperTraderTV.
SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.
Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.