Andrew Lockwood
The City Traders
This week we see four key central bank decisions in the G10. Bank of Japan, Bank of Canada, Norges Bank and the ECB. The Bank of Japan is widely expected to leave rates and the 10 year yield target unchanged. Recent soft Japanese data will certainly be a concern for any remaining long Yen traders with the case mounting for a possible further easing at the next BOJ meeting. The markets continue to be in a state of “RISK ON” which in turn should also cap any meaning full rally in the YEN. The BOC rate decision is due on Thursday. The recent round of strong employment data is likely to fuel the case for no change in rates. The Loonie is likely to show strength into the announcement. We are therefore jumping in on the strong uptrend. We are buying minor pulls backs in the CADJPY this week with profit targets set at the 2019 highs around 85.10 with potential for a further move to 85.50. A print below 83.50 would invalidate this trade.
The information provided in these commentaries is for education purposes only and should not be confused with investment advice. Trading foreign exchange or CFD’s on margin carries a high level of risk and might not be suitable for all investors. Before deciding to invest in foreign exchange or CFD’s you should carefully consider your trading objectives, level of experience and risk appetite . The possibility exists that you could sustain a loss of some or all of your initial investment.
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