Talking Points:
• Risk trends are still the guiding hand of the market - capping the influence that monetary policy draws
• The BoJ's surprise negative rate announcement from Friday carries over signaling fading confidence in 'stimulus'
• While the FOMC decision is behind us, Fed speculation will be a key factor this week along with the BoE decision
See how retail traders are positioning in the majors in your charts using the FXCM SSI snapshot.
Chief Strategist John Kicklighter discusses the top Forex fundamental themes for the coming week of trading. The BoJ's unexpectedly decision to introduce negative rates through the end of last week carried over to the start of this trading week. That said, the cheer of more accommodation both through global speculative appetite and more concentrated Yen cross speculative opportunity seems to be in short supply. A negative rate policy doesn't carry the same gravitas as more QE purchases - which is increasingly finding diminished returns itself. We discuss this important theme alongside broader risk trends and an outlook at top event risk (central bank updates) in this week's fundamental webinar.
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