Talking Points:
• Neither risk trends nor monetary policy (viewed through equities and USD) opened to strong pace this week
• Greece continues to top headlines, but Euro investors seem to be confident or at least unconcerned
• Top event risk this week kicks off with the RBA today and will be followed by high profile events later
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There are few riskier environments for speculators than in the twilight between 'correction' and 'reversal'. That is the situation the Dollar and global equities find themselves in now. Having seen a retreat from both these past few weeks, the questions as to whether the modest relief positions meaningful opportunities for medium-term investment will plague traders confidence and restrain their conviction. Clear catalysts are best served in these circumstances, but there are few of those that can tap the deeper fundamental currents - perhaps not until Friday's NFPs. In the meantime, event risk will still keep volatility churning. Greece has taken to the headlines again as the FT reports the IMF is warning more is needed for Greece than just the release of its final bridge funding. Ahead, we have the RBA decision as the start to a string of high profile events. We discuss trends and catalysts in today's Trading Video.
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