Back from a short CNY break, you will notice the narrow range which the market is trading in for today, primarily due to the Chinese and US market being closed today. Since my last analysis, we saw the USD strengthen against the major currency pairs, as the S&P 500 shows signs of reversing its recent gains.
Due to a lack of major economic drivers, I’ll not be anticipating any major moves today. Looking for short term trend following trades, with an eye on upcoming events over the next couple of days.
I’m also planning potential big moves for the EURUSD and GBPUSD , as despite weaker economic performance, they overextend their upward moves, possibly due to short term technical plays.
All of which, will still require continual USD strength, either from a move in the S&P500 or as the stronger data from last week reinforces the case for more consistent/aggressive FOMC rate decisions.