Can't put my finger on it.

Today's positive US retail sales, should, in my opinion, be deemed as 'good news is good news'. Meaning a continuation of the 'soft landing narrative'.

But the currencies are not behaving in a 'risk on' manner. And I can't put my finger on why....it could be JPY liquidity, as the yen has maintained its strength post (likely) intervention. It could be negativity regarding chinese data. Or it could be what's being termed 'The Trump trade' as the market thinks about potential Republican policies.

Or, it could be something I haven't thought of.... But what it does mean is because I can't understand it, I can't trade it.

Similarly, 'soft CPI' from Canada should in my opinion mean a weaker CAD. But following an initial spike of weakness. The CAD has recovered, particularly Vs the AUD and NZD.

So, for now, it's a case of sitting on the sidelines, observing and waiting for the currencies to move how I think they should be moving.

Feel free to email any thoughts or questions, you may have a different opinion than me:

johnelfedforexblog@gmail.com