Post CPI thoughts.

This morning's trade didn't last long as the market remained in a fairly positive mood post US PPI data. And the positivity remains following US CPI data, which, although inflation is still 'sticky', the data isn't too worrisome and any thoughts of zero FED cuts this year are disappearing. The VIX is falling, the S&P is positive and US yields are dropping.

Which begs the question, is a 'risk on' trade viable?

Whilst I'm still pro USD over the medium term, the current 'price action' does suggest a USD short 'in the moment news trade' is viable.

The JPY remains tricky following recent BOJ comments. But I do think the CHF is potentially a good short 'risk on' trade. Perhaps AUD CHF long.

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