AUD/JPY did not make a big transfer and USD/MXN retains breaking down
It was a whirlwind week however in case you take a step again, there have been actually three themes: Tech inventory weak point, a drop in sterling and oil softness.
You possibly can strip all these issues out as idosyncratic components and then you definately’re left taking a look at one thing like AUD/JPY. The weekly chart there reveals not a lot of something taking place. There was an extension of the breakout final week that light and a few volatility this week. Importantly, it held above the year-to-date highs.
One other threat barometer that I proceed to look at is USD/MXN. I am decidedly bearish on this pair for various 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 may definitely overwhelm the temper in FX however I am beginning to assume we’ll look again on this episode as an option-driven mess, not a big prime.
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