Weekly review

This last week was filled by central bank decisions from the US, Britain and Japan (and also Switzerland). Plus inflation data from the UK and Canada created movement. Monday was a very quiet day, things started to get moving on Tuesday, with producer product data from Canada giving an indication of what was to come from wednesdays CPI data, which came in better than forecast, boosting the CAD and potentially keeping more rate hikes on the table. It was the opposite story from the UK, inflation dropped more than forecast, weakening the pound. This weakness was then compounded by a surprise 'rate hold' from the BOE and the question is now being asked: is the UK at it's peak rate?

No such dovishness from the US, where as expected, a 'hawkish hold' with talks of a least one more hike, and a higher terminal rate next year kept the USD bouyed and may do for some time yet.

Arguably the main event of the week was Japan's rate decision in Friday's Asian session. Where a hold with no sign of imenent policy tightening weakened the yen and my short JPY bias still remains.

As a side note , a robust showing from the AUD and NZD, possibly due to rising commodity prices and also coming from oversold conditions, it will be interesting to see if institutional money starts going back into Australia and New Zealand.

I'll start Monday 25 September with the view that the JPY and GBP are potential short candidates. Vs the USD or maybe commodity currencies.

Results for week:

Trade 1: CAD JPY +0.5

Trade 2: GBP USD  0

Total since start of blog = +7.5%