Waiting for Powell.

Thursday's PMI data showed positivity for the US economy. And gave a bout of strength to the USD, which could have been the market realising three US rate cuts won't be necessary this year. Or it could simply have been an excuse to take profits from USD shorts ahead of chair Powell's speech today.

With the speech in mind, although possible volatility is expected, ​it isn't a scenario where I would place a pre event anticipation trade, simply because speeches often don't start exactly at the scheduled time.

So it's a case of waiting to see if what mr. Powell says creates enough of a reason to place a Friday trade. My preferred option would be for the market to like the narrative, which would possibly open the door for a 'risk on' trade.

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