Happy Holidays! It’s a holiday week in the United States, headlined by Thanksgiving and Black Friday. This time of year typically produces chaotic trading conditions. No matter; there’s always an opportunity to be had. The key to successful holiday trading is to know when to trade. There isn’t much on our economic calendar this week. So, we’re going to be aggressive Monday through Wednesday — here’s how. Monday The central bankers speak! On the heels of last week’s dovish UK CPI print, BoE head Andrew Bailey is scheduled to make public comments during the US session. Expect Bailey to address the improvement in British inflation. A dovish driver of the sterling? Perhaps… With the RBA Minutes and an RBA Chair Bullock speech due during the Monday US overnight session, the AUD may be in play. We’ll focus on the pound/Aussie to open the week. Key Market: GBP/AUD Tuesday Tuesday is an
Because forex scalping requires unconventional day on the markets. In observance of Thanksgiving, the FOMC Minutes are to be released during the Tuesday US session instead of the normal Wednesday. The world of finance is eager to hear any word from the FOMC on policy; is there a divide brewing in the board room? Does the staff still believe a recession to be unavoidable? We’ll find out on Tuesday. Are you ready for more inflation data? If so, you’ll want to check out Tuesday’s Canadian CPI. The global disinflationary trend may have begun. Will Canada show the pricing improvement of the US and UK? It will be a surprise if these figures come in hot. Key Market: USD/CAD Wednesday Wednesday will be a unique session. Remember, as the forex day progresses, liquidity will become increasingly reduced. This is a function of US traders taking early leave for Thanksgiving. If you trade Wednesday, it’ll pay to be aggressive from the opening bell. The markets will actively price US Durable Goods during the pre-Wall Street open. To get in on the action, we’ll be looking to trade American large caps via the US30. Key Market: US30 Bottom Line We must have a solid game plan when we trade an unconventional economic calendar. For this week, it’s simple: we’re going to be active early in the week and grow passive as we roll toward the weekend. Thanksgiving and Black Friday will greatly reduce the number of US traders in action; the time to trade is from Monday’s opening bell through the first half of the Wednesday US Session. It doesn’t sound like much, but these 68 hours are more than enough for us to stack some green pips. Trade well!
