Talking Points:
- The holiday weekend disrupted trends in both risk appetite and relative monetary policy
- With the drain now behind us, a return to risk trends is a distinct possiblity with key trends developing
- Relative monetary policy trends are likely to keep traction, and a connection to sentiment is a decisive risk
Having trouble trading in the FX markets? This may be why.
Chief Strategist John Kicklighter discusses the top Forex fundamental themes for the coming week of trading. Liquidity is the name of the game. Last week, with the knowledge that market depth was thinning out quickly heading into an extended holiday weekend; it was clear that strong trends on most fundmental themes would be difficult to carry. Risk trends slipped from impressive advances and the relative monetary policy driver sputtered. Yet, now with the ranks filling back up and the docket populated with noteworthy event risk; we have both fuel and spark. While monetary poilcy remains the most productive driver for FX trend and volatility; it is the aggregate sentiment of the crowd that carries the most weight and potential for global investors. We discuss the themes, liquidity and key event risk like Friday's NFPs in this webinar.
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