The week ahead.

With US data still taking center stage, the weeks main event will likely be Thursday's CPI data, where further disinflation confirmation will be hoped for. Which would give a continuation of the 'soft landing' narrative.

Chair Powell speaks again this week, although, I would be surprised if he alters his stance from last week.

The RBNZ has an interest rate decision, recently 'soft data' has slightly dented sentiment for the NZD, but an expected 'hawkish hold' could reignite NZD longs.

Hawkish BOE comments keep the GBP propped up and the pound remains a potential long in a 'risk on' environment.

The EUR remains tricky to trade, weakness following the uncertain outcome of the french election has reversed.

All things considered, US Bond yields, although dropping, should remain fairly steady whilst it appears the Republican party could control the house, which will likely limit USD weakness. (At least leading up to CPI).

Therefore my preference remains for 'short' JPY, CHF or possibly CAD....Vs AUD, NZD or GBP.

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