Volatility is markedly decreasing in most major pairs. I am not sure what it takes other than some major unexpected headlines to motivate traders to put on positions in size prior to the EU summit. I myself do not expect much to come out of it, current positions Germany vs. rest of Europe are set and made known and I do not see how consensus can build in this way. Longer term I still believe that those with money will prevail which is Germany in this case. Those in distress need to bow out and lower their expectations and submit to more painful restructurings, I am afraid this fact has not fully set in in France and Italy.
It makes zero sense to predict where rates are gonna be, there are just too many moving parts: US elections, US economic sustainability and money printing, opaque Chinese data. If Iran or forces in North Korea or in the middle east want to flex their muscles then now is probably an idea time.
Back to business: The dollar held onto its current levels despite the market having attempted to sell it for the third time below where I see it now. Looks like the edge is on the side of risk-off if I have to take sides. Thus I look for selling opportunities in the dollar crosses. The yen looks a bit stronger here; are players challenging BOJ to do their intervention thing once again all alone? We are not far from 78-79 levels where I see Japanese politicians freaking and starting to call up BOJ non-stop pleading for intervention.
It makes zero sense to predict where rates are gonna be, there are just too many moving parts: US elections, US economic sustainability and money printing, opaque Chinese data. If Iran or forces in North Korea or in the middle east want to flex their muscles then now is probably an idea time.
Back to business: The dollar held onto its current levels despite the market having attempted to sell it for the third time below where I see it now. Looks like the edge is on the side of risk-off if I have to take sides. Thus I look for selling opportunities in the dollar crosses. The yen looks a bit stronger here; are players challenging BOJ to do their intervention thing once again all alone? We are not far from 78-79 levels where I see Japanese politicians freaking and starting to call up BOJ non-stop pleading for intervention.