Tuesday 7 October

There is not an awful lot to chew on so far this week as the US government shutdown continues. We did get the (weak) JPY opening gap following the weekend election news. And it certainly feels like the JPY is back is 'to short territory'. I initially felt the move was too big and wanted to wait for a pullback, we are now having that pullback and JPY short is very much on my radar.

I also continue to have a preference for short USD, although it has begun the week quite strongly and it could be up to the upcoming slue of FRD speakers to propell the USD one way or the other.

During Wednesday's Asian session we have the RBNZ, it's debated whether the bank will cut rates by 0.25 or 0.5. the forward guidance (hawkish or dovish?) could create a NZD trade in either direction.

Arguably, a JPY short has already been viable this week and as things stand, I suspect it will be my next trade.