The week ahead.

Following Friday's soft manufacturing PMI, the USD weakened and the yield of a US 10year bond fell below 4.2. any further drop in yields could signal a continuation of USD weakness. Tuesdays service PMI (forecast slightly lower than last month) will be closely watched. But chair Powells speech on Wednesday (where he'll likely try to remain as hawkish as possible) could see the USD struggle for directional bias this week. And of course Friday's NFP will looms in the background and any 'projections' could sway USD sentiment.

Over the weekend it emerged the BOJ are considering announcing the end of disinfaltion. Which should be JPY positive. The market learns to take anything from the BOJ with a pinch of salt. But Tokyo CPI during Monday's Asian session could spark JPY volitility and possibly create a yen opportunity in either direction.

There are two interest rate meetings this week, Canada and Europe. Both could create opportunities and I'll be prepared to trade on either direction depending how 'hawkish' or 'dovish' the statement and press conference.

All in all, given the uncertain mood of the currencies of late, I'll be staying patient and waiting for a clear and obvious opportunity.

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