Tuesday 1 October

The USD ship has steadied post Powell speech as the market starts to price in two extra cuts this year rather than three. But overall market sentiment remains positive.

Sentiment for the EUR remains tentative as Ms laggard reiterates caution regarding a slowing economy. Today's CPI data will be interesting. A soft number, whilst good for residents of the eurozone, will put more pressure on the ECB to keep the rate cuts coming.

The JPY continues to weaken following Friday's strength, which appears to have been a 'flash in the pan' as a further BOJ rate hike seems a way off, if at all.

The AUD continues to outshine, with the RBA remaining the most hawkish central bank, backed up by positive retail sales data and prevailing sentiment surrounding china.

All in all, I continue to look for 'risk on' trades. With a stop loss behind 'nice 1hr support'. Preferably JPY or CHF short. But not discounting USD or EUR.

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