FX closing on 21.12.2018

It’s wintertime, sales period on equity markets and global interest rate yields. Fear of a slowdown, fear of a shut down, fear of a trade war, fear of CB independence, fear of too much oil, fear that the White House ends up empty. What a week just before Xmas.

Risk got hit with equity markets and lower yields. JPY is THE undisputed king this week. All the rest lost ground.
Well actually not completely true. As the week progressed, the mighty dollar made a comeback vs most as the start of the yearend flows saw regular USD buying. It’s actually called to be the biggest yearend buying USD need in years. That due to the abysmal performance of the US asset markets this quarter creating a big hole in currency neutral asset managers’ books.

Next week may see more USD buying as the corporate year comes to an end and SOMA kicks again on the 31st that is, but I reckon most players will want to do their shopping next week and not wait for the last totally illiquid day of the year to run behind the facts. It could give perfect opportunities to find some early Jan play.

It’s been quite a week in the ForexFlow sphere again. We had a good few trades going with the flow.
Rest me to wish you all a perfect restful and peaceful weekend .
For those taking a break, enjoy the festive season, merry Christmas already and recharge the batteries for all the excitement to come next.
Thanks for all your input again this week, I’ll chat to you Sunday night.
Be good and don’t do what I wouldn’t do!

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