Wednesday 2 August 19:30 UK time.

Today has been a UD dollar story. Starting with the fitch downgrade to US credit, which caused a spurt of risk off and gave strength to the JPY in particular, just at a time when it appeared the yen strength from last week's yield control was waining. So what now for the fitch downgrade story? I suspect that the mild panic will subside and JPY shorts could be back on the table soon. But at the moment it appears the market is still a little unsure (the S&P tried to break support within the last couple of hours) so for the time being I'm going to wait for a nice 4hr up candle on the JPY charts before shorting the yen again.

The other dollar centered story from today was the bumper ADP employment numbers. Giving the dollar a boost and raising the question of the potential return of inflation. For now, the soft landing narative is still in play, which should return an element positivity to the market.

Tomorrow brings the BOE interest rate decision. Will Mr Bailey remain hawkish? The effect on the pound could be binary and it may well be tradeable in either direction depending on the forward guidance.

For now, I'm going be an observer of the market before forming a conviction on entering a trade.