Wednesday 30 October.

Higher than expected inflation in Europe, combined with better than forecast GDP data keeps the 'EUR bounce' going. And does make the EUR a tempting long as any thoughts of a further 0.5bp rate cut in December are trimmed to 0.25bp.

The GBP initially sold off following the budget announcement. But inflation is forecast higher than expected and that 'should' quell any GBP weakness.

Slightly softer CPI data from Australia hasn't brought forward rate cut expectations. The first RBA rate cut is still forecast for next year. Which 'should' keep the AUD supported all things being equal.

Excellent US ADP jobs data is slightly off set by lower GDP. The USD initially rose but the positivity has since re-traced. Which may well be USD profit taking. The dollar still remains on my 'to long' list.

The BOJ has a rate meeting later this week. A hold is expected. And with the VIX remaining below 20 and tentative hopes for china to up it's stimulation efforts. If earnings continue to remain positive. I'm hopeful short JPY and CHF trades will continue to offer opportunities. Plus the CAD remains in the doldrums.

Therefore, long USD or EUR, Vs JPY, CHF or CAD are currently on my 'watch list'.

Currently I'm content to wait and see if the USD pullback stops before deciding if EUR or USD is the best long option.

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