I think it is almost impossible to see a trend in any of the recent FX market moves. The wider markets are seeing some rumblings with Gold being the primary mover. We now need to wait and see whether this is just the traditional September buying or if there is something more sinister behind it. The US stock market broke it’s sequence of 4 losing days and while it is certainly losing some of its recent bullish momentum, calling for a bear market is a bit premature.
We saw the FX market jump onto the bullish EUR/GBP bandwagon in recent weeks but this is pure speculation and will always be undone eventually. The rise in gold is tempting players to buy commodity currencies like the AUD/USD but I maintain my view that they are buying in at the wrong level and will eventually be forced out. The big question in EUR/USD is if China can continue to determine the ranges (the answer of course is no) and the USD/JPY market will surely test the resolve of Japanese authorities around 91.80 before deciding on its next move.
TGIF and good luck today.
