Thursday, September 21, 2017

Yellen Baby…

At least I can say that we did see more of the more of the same. By the time I laid my head on the pillow, it was still was the sheer boredom that I blanked out. Thankfully, I awoke a little later than normal. That avoided the initial analysis I do overnight so at 4am, after Yellen’s cosy chat, the majority of the bedlam was coming to an end. Well, to be honest, I think there is another leg to go but not excessive.

This tends to suggest that we’ll end the day with the Dollar looking lower. Now, how this recovery/rally develops will be mighty important. There is a disparity between EURUSD and USDCHF and an ambiguity in GBPUSD. So there are still risks and how the reversal from the current Dollar highs develop is going to be important.

Even the Aussie has begun to wake up and following the sharp pullback, we now need further gains – and to new highs. This does tend to follow the general swing scenario…

As for EURJPY… through all the frantic development there was a relatively limited move lower, clearly with a modest correlation between EURUSD and USDJPY. Interestingly, this pair still needs further upside but it suggests that EURUSD will likely be the driver…

Just as a warning... the initial rush that came from Yellen's tongue was so ferocious that the analysis could be incorrect. Thus, take care.

Good trading
Ian Copsey  







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