Barring GBP , there don’t seem to be many real flows involved so far today

  • ECB’s Weidmann (Germany): Reiterates view that ECB needs to raise interest rates over time
  •  Increasing price pressure opens the perspective on monetary policy normalization
  • Regling upbeat about Europe’s economy
  • Better US data
  • US banks results from Jp Morgan and Citi beating expectations
  • Polls giving Abe a big lead in the elections
  • Us tax plan humming in the background
  • US-NK pretty calm (for now, and hopefully longer)

We might expect risk to get a lift and build on yesterday’s gains in EURJPY, EURCHF and USDJPY , USDCHF .
And yet , barring the GBP fall out on the Brexit snap, everything else remains pretty listless : that tells me that today the real money community is
being very quiet and the most active are the day traders and algo’s inside 0.2-0.3% ranges . We need to be patient in this case . I am small short the funders JPY and CHF
myself waiting for the next wave , i.e. breaks of EURJPY 132.90-133.50 ,USDJPY 112.10-112.60 , USDCHF 0.9710-65 , EURCHF 1.1520-65.
Maybe the speakers in Washington later today , fixings or Gotobi day tomorrow in Japan will put some fire in da house .


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