intraweek up to Thursday, The euro unopposed negative driver with the gbp being the postive secondary driver, the yen is the positive rock and the USD is the mover. So flows are moving out of the euro into the gbp, yen, and to a lesser extent the usd. So how to interpret…well yen this week has been showing more weakness than last probably due to strength in equities…the us dollar is already pretty high…so flows are probably going to continue going into the pound…so gj and gu long would be 2 to watch…Anther thing to think about is that the euro being a unopposed driver of flows could be forming a floor so that is something to consider we have to watch.
for the last 13 weeks the rankings for the currencies are as follows:
Usd
Chf
Cad
Gbp
Eur
Jpy
Nzd
Aud
Virtually, the same as last week other than the Usd and the Chf flip flopped. Kinda goes with my premise that the Usd is quite high!!! Will it correct or continue trending??? That is the question.
What’s the basis for the USD being quite high? It’s quite low compared to almost all of the majors when you compare it with pre Covid market. Hard to tell what it should be at with them printing so much money, but they’re not the only ones.
yesterday , yen was driving the negative flows into the euro and tot he lesser extent into pound…i mentioned this last week…i think this will continue to happan as the pound to be the main beneficialry with euro secondarily!!!
id be careful with this pair…if backdoor flows are going into the euro then there will be weakness in the chf and i believe alot of good news is priced into the nzd based on sentiment so the aud will rise!!!
Actually, today may have been a important day. the usd was a unopposed negative driver so the the USD may have bottomed today either that or it may be a continued move down…we will see.
