AUD/JPY did not make a major transfer and USD/MXN retains breaking down
It was a whirlwind week however for those who take a step again, there have been actually three themes: Tech inventory weak point, a drop in sterling and oil softness.
You may strip all these issues out as idosyncratic components and then you definately’re left one thing like AUD/JPY. The weekly chart there reveals not a lot of something occurring. There was an extension of the breakout final week that pale and a few volatility this week. Importantly, it held above the year-to-date highs.
One other threat barometer that I proceed to observe is USD/MXN. I am decidedly bearish on this pair for numerous causes that I’ve outlined over the previous few weeks. Regardless of all of the turmoil and USD power this week, it has damaged down.
One other spherical of fairness weak point might definitely overwhelm the temper in FX however I am beginning to suppose we’ll look again on this episode as an option-driven mess, not a major prime.
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