Do you have a checkmate strategy for the week?

Equip yourself with a checkmate strategy every time you trade.

This is your binary options and forex video news update for May 9th through 13th, 2016.

As we suspected, despite less than stellar PMI numbers and employment data that was released at the end of last week, the USD was able to brush off the gloomy numbers and post a temporary rally against its major currency counterparts on Friday.

Why is the USD able to shrug off the negative data? The biggest reason is…where are the big market player’s gonna go?

We see that there is a push by the other reserve banks to see how low they can go. Is this the best way to go? Maybe not, but a race to the bottom seems to be the theme. The Aussie has followed suit with last week’s rate cut. It may be contagious. With negative rates for the Bank of Japan and the Euro’s ECB also going this route, who else is gonna show themselves to be the positive light in the midst of so much negativity? Even with all its woes the USD has managed to outshine its counterparts and this is what keeps lady liberty at the top of the heap even if this is not necessarily where she should be…or for that matter, wants to be.

With the dreary forecast that is looming over the USD it appears that the skies are even that much gloomier for emerging market dependent economies. The Aussie has made its bid by throwing its hat into the rate cut ring. Will this strategy be enough for now to keep the Aussie ship upright? Anticipate that rough waters are ahead for not only the Aussie, but also for the Kiwi and the Loonie.

Yellen will be putting on her best game face, but she will have a tough time trying to disguise her dovish stance when next month’s Fed meeting will leave a rate hike on the back burner. Her hands are tied and her only strategy in this economic game will be no move at all.

yellen draghi playing chess

Yellen will be hoping that no move on rates will only be a pawn in this “high stakes” game of chess. The saving grace for the USD may be that its counterparts are in worse position. The USD hopes to be better protected before any move will leave it vulnerable to a checkmate. The USD may be king for now, but queen Yellen will be left vulnerable as the shackles around the Fed’s becomes tighter and tighter.

Here’s the market movers to look out for this week:

  • Governor Wheeler will have a couple of speaking engagements that will impact the Kiwi. Be looking for signs that point towards the Kiwi jumping on the rate cut band wagon. This will send ripples on your NZD/USD pairings.
  • For the Sterling, the BOE will have its Monetary Policy Statement. The most likely scenario will be Carney keeping a steady hand on rates. Based on the anticipated response, be prepared to move on any indication that a Brexit from the euro zone may be in play.
  • For the USD, Retail sales data and Consumer Sentiment will be on the docket. A slight hiccup will have the USD showing weak against the majors.

The bright side in all this negativity? With all this volatility it leaves traders plenty of opportunity to cash in and profit no matter what move is made. The strategy and system you implement on your trades is what makes all the difference. Make sure you have your game face on by checking out our winning trading systems. Don’t be a pawn in the trading game. With full and unlimited e-mail support, you’ll be equipped to implement a checkmate strategy every time you sit down for a trading session.