Weekly review.

The week starting Monday 6 November started how the week before ended, with a fairly buoyed market thanks to the recent FOMC meeting and NFP giving rise to a likely 'soft landing' for the economy. This created short JPY or USD trades as a viable option, in accordance with the 'risk on' environment. Towards the end of the week, there was a pushback against this sentiment, as FED officials and notably, Mr Powell, spoke with a more hawkish tone which once again created a little uncertainty on the future path of rate hikes in the US. will the FED raise again? How long will the rate remain in restrictive territory? 'The market' has been starting to price in rate cuts next year, but that thought was quelled by the end of the week. Which put some life back into dollar strength and caused the 'risk on' currencies to sag a little. Moving into next week I will be watching the 'risk sentiment' closely. I currently expect to still be looking for 'soft landing' short JPY 'risk on' trades. But Tuesdays CPI data from the US could have a big say in the near term market mood. In an ideal world, CPI will continue to soften, which will re-affirm the soft landing narrative.

In other news, GBP struggled this week, partly thanks to sluggish GDP data. The CAD is still at the mercy of the volatile oil price. And data from China will be watched closely on Wednesday, positive or negative numbers could affect the AUD and NZD.

On a personal level it was a decent trading week, with 4 trades which was my highest number of trades per week for a while (I've been averaging two lately)

Results for the week:

Trade 1: AUD JPY 0

Trade 2: USD JPY +1.5

Trade 3: GBP JPY +1.5

Trade 4: GBP JPY -1

Total: +2%

Total since start of blog = +12.5%