Go With The Flow 4 January 2019

Time for you pip-pickers to let us know what’s on the radar today

Friday already. Got to love a short week to ease us in to the New Year.

As expected, Japanese officials paid little heed to the wild JPY moves as they came back from their jollies. The low key “monitoring FX moves” rhetoric is indicative of the fact that everything has been stable since it happened. Mark is as a one-off and move forward.

Today’s big event is the NFP and something is growing even bigger and that’s Powell’s panel appearance later. This is growing into a bit of a monster because all we’re reading right now is analysis on what Powell is/could/should say today. It’s a panel event with with Yellen and Bernanke as guests too, not an FOMC press conference. It very much looks like the market is getting itself all riled up for action and if it doesn’t get any, prices are going to move on disappointment. The event itself might turn out to be nothing of note but the market moves could still be wild.

Trading wise, I’ve got a clear book right now. My play in USDJPY failed yesterday so I’m sticking to the main levels. That’s down to the 106.60/80 area, perhaps into 107.00 and I’ll be watching the 108.40/50 area I highlighted yesterday, which held overnight.

EURUSD is still stuck in its rut so I remain 1.12-1.15

I’m not too keen on much else. NZDUSD looks mildly interesting around the 0.6700/20 area. GBPUSD into 1.2700. I’m mainly looking for quick jobbing opportunities rather than anything longer-term. Next week will be classed as a full return of markets and traders so we might get some trends developing.

That’s then, and this is now so let us know your thoughts for today.