New Week, New Trades
Focus was on China this weekend with Xi Jinping cementing his grip on power during the CPC. Rumors in the macro forex trader environment are now that a devaluation of the CNH might happen again as in 2016. As of writing this the FX cross USDCNH is up 1,01 % day/day. Worth watching.
Next on our radar is the JPY. We had several successful long positions on USDJPY last Friday but volatile selloffs transformed them into almost zero in profit. The feeling in the market seems to be that it is the BoJ that are intervening. Should that be the case it might be interesting to go against the stream and go long on USDJPY put-options or to simply short spot USDJPY. It might be wise to monitor the USDJPY trade for 1-2 days to see if BoJ keeps up the intervention at a consistent level. As for now it seems they want to keep USDJPY under 150, which makes sense in terms of the support and resistance levels keeping the 153-157 and even 160 out of FX traders mind for now. It is going to be interesting to follow this week.
We have not forgot about good, old GBP. It seems that Rishi Sunaks rise to power calms the markets somewhat. With his background that might be sensible. The UK is however still in a tough spot and GBP could lose further ground. Our feeling for now though is that GBP might have a week in the green.
