Major events for the day (Asian - London - NY - Asian)
- Last Friday the market closed with some recovery into USD because the Healthcare bill was pulled out from voting once again. The Republicans clearly did not enough vote and we had short squeeze and profit taking to push USD higher. However, the USD selling soon resumed on Sunday Asian session with USD weaken cross the board.
- BOJ stated the easing policy is here to stay for sometime
- Japan Service Producer Price Index 0.8% vs 0.5% expected; 0.5% pervious
- German Ifo Business Climate 112.3 vs 111.2 expected; 111.1 previous
- The market was opened with significant risk off sentiment coming from the disappointed Healthcare bill last Friday where Republican pulled the bill once again. The doubt over Donald Trump’s ability has shadowed the market with USD weakness cross the board and buying into safe heaven currencies.
Upcoming Risk Events
- FOMC Evans Speaks
- RBA Debelle Speaks
- FOMC Kaplan Speaks
Our Game Plans for next Sessions (London to NY)
- With significant risk off sentiment, our buy is toward Japanese Yen at good retracement levels. USD is an obvious short, but GBP will also be interesting to price in for Wednesday’s triggering of Article 50 in a larger timeframe. NZD & AUD & CAD can also be a good sell against JPY at nice levels. EUR will also be a good choice to long as it’s a good safe heaven currency and we just had a good German Ifo Business Climate.