- The US dollar rallied a bit during the trading session on Wednesday as we have broken about the 50 day EMA.
- This is a market that has pulled back enough, I believe, to get those interested in owning green banks involved.
- That is essentially what you're seeing during this session.
Now, keep in mind the CPI numbers came out of the United States at 0.3% month over month, exactly as expected. So, it does keep the Federal Reserve in the box of perhaps cutting rates in December by 25 basis points, and then doing nothing in January. That could send this market looking to the 59 level above, which was a recent swing high for a couple of different attempts.
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Emerging Market Will Be Tough
We're in an environment right now where investing in emerging markets, probably not the smart move. I think a lot of people continue to run to the US and as long as that's the case, I can't imagine a world in which people go running to the Philippine pay zone. Remember, the Philippines is pretty far out there on the risk appetite spectrum.
The one thing that I think you continue to see is money flowing into America in various forms be it the higher yields and the bond markets that people are chasing, maybe it's the equity markets, it's just the US dollar in general, which has just been like a wrecking ball against most things. While this pullback was rather brutal, you can see that we've already wiped out about half of it in short order. I do think this continues, but I also recognize that this is a market that is very illiquid and does get to be pretty messy at times. With that, I think you have to be cautious, but you probably have to look to the upside.
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