Talking Points:
• Market conditions are likely to remain volatility moving forward, but trends may begin to struggle
• A clear Pound collapse, direct commodity move and decisive G20 influence will be more mixed
• Dollar may offer the clearest fundamental view as monetary policy presents fewer conflicts and NFPs approaches
See how retail traders are positioning in the majors on DailyFX or bring the figures to your charts using the FXCM SSI snapshot.
What kind of market conditions are we currently facing? On the one hand, we have been some key technical breaks and reversals as with EURUSD and USDJPY respectively. On the other, we continue to carve out profound trends like the GBPUSD's collapse. Potential rests with motivation, and that means key fundamental drivers. There are numerous high-profile themes and sparks (data/events) to stir them, but that doesn't denote smooth sailing. It can be quite the opposite as essential market movers clash and compete. Generally, that can create certain high volatility, but trend development is more difficult to ensure. Marking my concerns, I will keep a close eye on the big but slow shift in general sentiment that has torn USDJPY and other yen crosses lower. I will not add to the theme until circumstances look conducive. Meanwhile, the key drivers of the past week including the Pound collapse on Brexit fears and commodities attempt to turn the boat on headlines will turn into chop. Ultimately, the Dollar itself may be the most liberated outlet for fundamental bearing as monetary policy faces the least noise and the US docket touts the February NFPs. We look at trading conditions, themes and individual opportunities in this weekend Trading Video.
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