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Central Banks to dominate FX

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. 

Author

Andrew Lockwood

Andrew Lockwood

The City Traders

30 + years veteran trader registered and authorised under Financial Services Authority FSA (disbanded in 2013). Futures and Options trader on the London International Futures and Options exchange (LIFFE).

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