“The US Dollar should rise if the 10 Year Yield remains steady.”

Friday saw the US Dollar limp off its recent lows and if you took the opportunity to watch Friday Live or caught the replay on the weekend through the Members Learning Centre you may have elected to place a long pending USD v CAD position on Friday evening. The US Dollar was sold off heavily for 4 straight days last week and CNBC today is reporting it was the greenbacks worst week in 9 months. With US interest rates rising in 2018 along with the US 10 Year Treasury Yield such a sharp selloff can provide great trading opportunities if you are prepared on a consistent basis to think counter-intuitively. You need to think differently and bet against the crowd a lot as a trader and when you do, you are going to be wrong a lot. At least 50% of the time I would say, but the times you are right you can often win big and this is the defining difference between trading and investing. Investing is when you go with the crowd (managed funds and lower returns) but trading is for entrepreneurs and those with the mindset they are willing to go where others won’t. This can be foolish for many when they don’t know how to manage risk when they are wrong multiple times in a row. But an entrepreneur backs themselves and this is a trait that all good traders have, they have an entrepreneur mindset. They are willing to back themselves again and again and again but they do it knowing they will fail multiple times. The really good ones fail gracefully and their personal bets even if they are wrong many times are always exceeded when they are right. You can’t be a nervous nelly and be conservative by nature as a trader, you have to be willing to back yourself when you get knocked down, but you need to learn to do it the smart way.

Speaking of learning to do it the smart way make sure you check your inbox later this afternoon for your invitation to our 2018 Professional Trader Boot Camp.

Sharp sell-offs on currencies that are likely going to rise over the coming 12 months offer a solid reward to risk opportunity. The USD v CAD offered this on Friday via the Daily Trading Plan and in today’s daily video update, I will walk you through the reward and risk ratio and also explain how TIA will now analyse each of the 4-hour trades that it looks to take. If any new 4-hour trades present using the new technique they will be sent via Trade Time. There is one setting up today on the AUD v USD. For the US Dollar to gain further momentum early this week we don’t want to see the 10 Year Treasury Yield rise over 3%. Ultimately it will go over 3% I believe, however, the recent rally up has spooked a few traders and they are worrying it’s been rising too quickly. In fact, if it pulls back a little bit early this week to 2.8% I think the US Dollar will benefit.

When I look at the economic calendar for the week ahead and what has the potential to move price there is nothing coming from any of the major Central Banks with respect to a monetary policy statement. We will get the RBA’s monthly minutes from its February meeting at 11.30am AEDT on Tuesday and this could give traders a reason to move on the local currency if the minutes give any forward guidance on what the RBA may do with interest rates.

The theme early this week on currency markets will likely centre around the US Dollar with a focus on the 10 Year Treasury Yield.

Worth noting also was the reappointment of the Bank of Japan Governor Kuroda for another 5 years. He’s been at the helm for the past 5 years and his reappointment will simply be viewed by traders as “more of the same” which is zero interest rates and lots of artificial money printing.

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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The post Today’s Key Market Drivers: 19th February 2018 appeared first on Ltg Goldrock.