Monday 17 June.

It's a fairly quiet Monday in the forex market with no particular stand out news. The political uncertainty in Europe has calmed down for now. Mixed data from china during the Asian session doesn't give any clues about the health of the Chinese economy. The AUD and NZD are a little weak as the market ponders the likelihood of the RBA living up to it's hawkish narrative. But all in all, I don't have any conviction in the near term direction of any of the currencies.

Possible opportunities coming up are the RBA meeting (if anyone is around during the tail end of tuesdays Asian session) Alternatively, the prudent choice may be to wait for US retail sales, due at the beginning of Tuesday's US session. As the battle between 'higher for longer' and 'soft landing' will resume. Or if the data is very soft, the dreaded 'stagflation' word may rear it's head.

The good news is, I still believe the JPY is tradable short in either a 'higher for longer' (USD JPY long) or 'soft landing' (Risk on currency Vs JPY).

In the outside chance of 'stagflation / recession' narrative. I would sit on the sidelines and wait for a reversal.

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