Friday 20 February

All week I've been reading about potential military escalation between the US and IRAN, which is potentially very scary but (as yet) the rhetoric hasn't shown up in the 'price action' of the currencies, or the stock market for that matter.

JPY strength continues to unwind, backed up by recent data suggesting the BOJ are in no rush to hike rates again.

A slue of red flag US data could make it difficult to trade this afternoon, ideally all the data would fall in the same direction one way or the other, the perfect scenario would be a bout of 'goldilocks' data, inducing a risk on environment. (Reminder: 'goldilocks' means data soft enough to warrant rate cuts but not 'too soft' to induce concern).

All the while, I'm aware that heading into the weekend, 'anxiety' regarding US / IRAN could dominate proceedings.

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