Post CPI thoughts

Thursday's 'soft' CPI shows disinflation is on track, with shelter the only major component still too high. But multiple analyst reports suggest even shelter, although on a slower curve, should be back to pre pandemic levels by the 2nd quarter next year. All in all it was 'soft landing' data. Which was just what the market wanted to see.

So why did 'risk assets' fall after the initial move higher?

I believe due to a combination of: Well timed intervention from the BOJ plus a drop in mega cap tech, I suspect due to profit taking.

There is an interesting article on Forex Live, by Eamon Sheridan, regarding BOJ 'rate checking'.

Thursday's CPI data enhances my preference for 'risk on' trades. It's just a question of whether to short USD, JPY or CHF....and when?

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