CPI on the radar.

The ‘diplomacy hopes’ Positivity continues and until we get a headline dashing the peace hopes, I think risk on trades are viable, with the USD, JPY and CHF candidates to short. The potential spanner in the works is upcoming US CPI data, a high led than forecast reading could dent overall sentiment. The ideal scenario would be a below forecast reading (or at worst an in-line with expectations reading). In which case, I think sentiment could be boosted further. As things stand, I'm very tempted by an AUD CHF long.

But, rightly or wrongly, I'm going to wait until after CPI before committing to a trade. We could get flat price action leading up to CPI. Please feel free to get in touch with any questions.