The week ahead.

With no significant data releases on monday, we could see quiet trading until tomorrow's main event, US CPI. Although scheduled FED speakers and the BOE'S Bailey do have the potential to move the USD and GBP today.

The risk to the recent USD strength ( higher for longer interest rates) is a soft CPI number, especially considering Fridays CPI revision lower. Alternatively, a high number will likely see another leg higher for the USD.

In other news, a slew of economic data from the UK is reported this week. A continuation of decent data combined with sticky inflation could see the GBP remain supported. Plus GDP from Europe and Japan will be monitored for clues on the near term interest rate path for EUR and JPY.

Unemployment data from AUD and inflation expectations from NZD complete a busy week. With the S&P looking comfortable above 5000 and Chinese markets closed for Luna new year, any positivity out of Australia and New Zealand shouldn't be held back by china negativity.

For now, my decision is to wait for a 'fresh catalyst' to take advantage of. Which could mean waiting until tomorrow's CPI.

Please feel free to email any questions: johnelfedforexblog@gmail.com