Tuesday 22 August 07:30 UK time.

The dollar has weakened overnight, I believe thanks to china trying to stem the flow of yuan weakness. With US yields still high I currently don't have conviction that this USD weakness will last (Adam Button has written a very good article on the china situation). My decision this morning is to wait until the US session to see the market mood.

This happens a lot, there is a move in a currency that looks tradeable but I don't have enough of a reason to take a trade. It may well be that the dollar continues to weaken throughout the day, but dollar weakness goes against the recent fundementals so for the time being I'm going to sit on the sidelines and observe until I have something more concrete to hang my hat on.