Risk trading continues to emerge and this is one of the major themes in the markets this week. I’m still trying to find a balance in viewing whether this is just concerns about inflation, high rates, weak global growth, or perhaps a build-up of quarterly flows from stocks to bonds. Or maybe it’s a bit of both?
China’s efforts have certainly been met with disappointment, so that needs to be taken into account as well, but the dollar itself has not been rampant despite the market moves this week. Hmm.
In any case, charts will continue to be the best tool you can rely on in such cases. And the yen and gold are two of the major pairs to watch out for I would say, at least for now.
Today, it is important for the Bank of England to raise between 25 and 50 basis points but I prefer the former despite the hot inflation data in the UK this week.
What are your views on the market now? Share your thoughts/ideas with the ForexLive community here.
