Post FOMC reaction. The FED has held interest rates (as expected) and at the press conference (which I watched) Mr Powell was his usual measured self, not giving an awful lot away. Economy is still in good shape. Inflation is still too high, need to have greater confidence in the data before the
JPY weakness intensified. Even though the BOJ historically abandoned negative interest rates, the fact that a 'hiking cycle' wasn't announced has caused a strong sell off in the JPY. The fact that Canadian CPI was reported lower than expected, combined with the RBA not sounding too hawkish, has added
A week of central bank decisions. With a quiet data docket today, Its difficult to form a conviction in the direction of the currencies as we await a slew of central bank interest rate decisions. Starting with the RBA and BOJ during Tuesdays Asian session, followed by the FED on Wednesday. Then the BOE and Swiss
Weekly review. As the week starting Monday 11 March began, I was expecting USD weakness to continue following the higher unemployment and lower wage growth from the NFP data. But that weakness didn't materialise. And in the end actually turned into a resumption of USD strength as the week unfolded,
Japan wage negotiations take center stage. Reports coming through from Japan will be front and center until the wage negotiation meeting conclusion on Friday. It currently appears record wage increase are on the cards, which will be JPY positive and put pressure on the BOJ to change policy. Unfortunately, it may be prudent to leave the
NFP preview. The USD has had a rough week as chair Powell's perceived dovish testimony appears to have nudged dollar weakness earlier than thought (only two weeks ago it appeared June was even too early for a rate cut). In today's NFP, forecast 200,000 added jobs (remember
EUR weakness didn't last long. The EUR weakness following the ECB decision has turned into strength as the market embraces 'risk on' and the likelihood of a 'soft landing'. I'm currently of the opinion that 'risk on' trades are a viable option when a stop loss can
A busy day ahead. The USD weakness following yesterdays service ISM data didn't last and is a sign of the uncertainty at the moment. Today we have a very busy schedule, starting with EUR retail sales. The UK budget. BOC rate decision (any deviation from the markets pricing of a June cut
