Monedge, when you started with Coffee and USDJPY, it was fine…but when you suddenly moved over to Chinese Yuan and Singapore Dollar ( USDSEK is kind of my turf – still have a password based on exact rate of it like 25 years ago 😀 , I figured it out – Some Strong Coffee you got there 😀
You can send some over here 😀
There were those who thought I must have had too much coffee about a month ago with UsdJpy around 160 and I said we would see 153 in coming weeks. Pretty good coffee. Now I see conditions in support of the buy side of US Dollar vs Chinese Yuan (2620) and Singapore Dollar (3410) around todays lows. Perhaps 7220 or so UsdSek (Usd vs Swedish Krone) as well.
Spreads are wide as a constant with those pairs. Keep an eye out for stop runs of highs/lows as has been pointed out by Jay with GVI. But I wouldn’t take them, if they occur, to be anything more than just that. At least for now.
Bank of Canada Governor did not provide much verbiage of weight for consideration. The tone was there is not set in stone path of policy at present, that rate cuts will be dependent on the condition of data as it transpires, and the .25 cut was to stimulate growth and is fine for now. The bottom line is their policy is stable and not on any razors edge. Futures are trending down so the proper approach is the buy side of UsdCad unless something profound develops.
That said, the current price area for futures and options are decent to test the buy (sell UsdCad in spot) side if you like rolling the dice, as you could hit a runner. Buy side of 7325 calls at the money look decent on the delta and such at the moment. So in spot that’s a sell from just above 3800.
DLRx 104.01
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after all thas been said and done in and about markets
DLRx s stalled under its 200d ma
suggesting – or meaning – that dlr upside is limited in energy
on deck today:
wholesale inventories (now out)
S&P PMI
new house sales
bowman and logan yak
but should be wet noodle policy waste of time as the FED gang is in blackout
Here’s a catalyst for JPY buying
Exclusive: BOJ to weigh rate hike next week, detail plan to halve bond buying
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