Market still in limbo.

Uncertainty is still the theme at the moment. As 'the market' appears unsure which way to take the recent mixed data.

The VIX remains below 13, so there isn't a particular fear, but at the same time there isn't enough positivity for a 'risk on' trade.

Coming up, we have inflation data from Europe. Chair Powell and Ms Laggarde have scheduled speeches, the EUR in particular will be interesting, will there be talk of another rate cut coming soon?.

In other news, data from NZD is starting to soften and talk of another rate hike from the RBA gathers steam, all things considered, the AUD is still high on my 'to long' list, but it requires more of a generally positive market sentiment.

USD JPY is still hovering around 35 year lows, but the threat of BOJ intervention still looms. And similar to placing an AUD long, I would like to see more of a positive market sentiment before placing a JPY short.

So, all in all, I'm currently content to wait for a fresh catalyst.

It happens sometimes, you're not quite sure where the next trade is coming from. It's a case of staying patient. In the grand scheme of things, the next trade is never too far away.

Feel free to email any questions: johnelfedforexblog@gmail.com