Waiting for something to happen.

Nothing has materially changed to alter my preference of 'short JPY or CHF' trades. But currently, I don't have conviction in the near term direction of any of the currencies. It appears it's a case of waiting for the next 'event' whether that's an 'out of the blue catalyst', AMAZON earnings later today. Or possibly even the FOMC meeting tomorrow.

Regarding the FOMC, at the last meeting, the FED maintained its view of three rate cuts before year end. 'The market' has now priced out those cuts. And I'll be watching the press conference with interest. Not only to see the projected number of cuts, but the total amount of basis points by year end will be scrutinized. And I think the USD could be tradable in either direction according to the outcome.

In other news, decent data from Europe indicates the economy is heading for a 'soft landing' which is good news.

Disappointing data from Australia was a bit of a surprise, but doesn't currently change my view that the RBA will still be the last central bank to cut interest rates.

All in all, as the headline of this post suggests, I'm currently 'waiting for something to happen' to give me a fresh conviction in the direction of the currencies.

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