Wednesday 23 August 17:30 UK time

PMI'S came In soft across the board, with the service sectors also softening. Which is what the market has been waiting for. Today bad news is good news and talk of peak rates and rate cuts is back on the agenda. Bond yields are down, the VIX is down, stocks are up, it's a 'risk on' day. But with the DXY approaching strong 4hr support and the JPY gaining (I believe) fake strength in correlation with falling yields. Also, Jackson hole is just round the corner (where I expect Mr Powell to still sound hawkish. It's not a 'risk on' day that I'm prepared to trade just yet. My preference would be to trade a short JPY on a 4 hr reversal candle. But for now I'm going to observe and see how the land lies in the morning.