China positivity massages the risk environment.

The week began with positive rhetoric and data from China. And it's very nice to see the currencies behaving in a 'risk on' manner.

US retail sales, whilst not fantastic, indicate the US consumer isn't ready to throw in the towel just yet. (Does anyone remember 'the goldilocks narrative'?).

I currently find myself very tempted by a 'risk on' trade. But I'm in the age old scenario of 'waiting for a pullback'.

It then becomes case of comparing the currencies against each other to determine which pair to trade. And given the environment, it is each individual traders discretion whether to trade a 15min, 30 min or 1hr chart.

Of course, we are only 'a tariff tweet' away from negativity. And it's a big week for central bank decisions (FOMC,BOJ,BOE,CHF).

The VIX hasn't quite fallen below 20, but if nothing changes, I would feel comfortable placing a 'risk on' trade at the current VIX level of 20.5.

Please feel free to email any thoughtS or questions: johnelfedforexblog@gmail.com