Asset managers are viewing this week as a decider for US Bond markets

And with reason , Bloomberg has this roundup of what’s to happen States’ side over the week. Sharpen the pencils, the medium to longer term players will be on the case.
A slew of economic data, Fed’s rate decision, probably more importantly the economic outlook rater than anything on rates, Trump’s choice on the next Fed Chair and to crown the week , the US employment report.
For us FX traders, this should equally put us in a higher state of alert on the lookout for trend formations or confirmations.
Further more we have

  • BOJ on Tuesday and BOE on Thursday, the latter bearing more uncertainty and thus meaning more volatility than the former. Expectations are leaning towards a dovish rate hike to give some wiggle room for any deterioration.
  • We’re getting European CPI’s, GDP’s and Labour reports
  • UK sees lending, housing and PMI data to add to the BOE’s fun.
  • New Zealand employment figures , Australia trade and building numbers.
  • And to add to all this we can count on the politicians to fill in any gaps left. Spain, Brexit,NZD policies to be announced, Middle and Far East geo-politics.
  • It will be case of keeping the forest in sight through all the trees.
  • These are a (non-exhaustive) levels I will keep a close eye on for directions in my trading :
  • Base approach “for now” is a sluggish EURO, a neutral to underpinned GBP, an underpinned $ and neutral wobble on JPY
  • EURUSD 1.1440-1.1475-1.1500-1.1570-1.1660/70-1.1730-1.1835 . I am running a flexible short on this one for the moment, stop will initially be through 1.1670.
  • USDJPY  111.70-112.30-112.70-113.20-113.50-114.20-114.50-115.50
  • EURJPY 129.60-130.45/60-131.75/80-132.50-13.75-133.35/50
  • CABLE     1.2905-1.2985-1.3030-1.3088-1.3105-1.3185-1.3225/35-1.3340-1.3380
  • EURGBP 0.8735-8.8775-0.8825-0.8845-0.8905-0.8950-0.8980
  • AUDUSD 0.7570-0.7625/35-0.7730/40-0.7790-0.7850
  • NZDUSD 0.6640-0.6720-0.6820-0.6910-0.6940-0.7025
  • USDCHF 0.9760-0.9835-0.9910-0.9940-1.0025-1.0100-1.0170
  • EURCHF 1.1475-1.1525-1.1625/40-1.1690/10
  • USDCAD 1.2580-1.2675-1.2780-1.2860-1.2915-1.2993/00

Happy hunting, it’s going to be some ride again this week!

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