Fed minutes analysis this week
The FOMC minutes are due. Looking for any new insights into their rate hike path and QT. Could provide some volatility for $USD pairs, especially if the tone is more hawkish or dovish than expected.
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The FOMC minutes are due. Looking for any new insights into their rate hike path and QT. Could provide some volatility for $USD pairs, especially if the tone is more hawkish or dovish than expected.
While we're discussing major pairs, important to remember the commodity currencies. Rising oil prices typically support CAD, and base metal prices for AUD. These indirect effects on $USD pairs are worth tracking.
Not strictly forex, but in the context of broader market risk and its impact on currency pairs, is anyone considering a pair trade with $NDX short and $ES long? Tech seems to be leading the recent downside, potentially signaling a rotation. How might this play into $USD strength?
A lot of focus on inflation and central bank rhetoric, but how many of you are primarily watching the 2-year and 10-year US Treasury yields for your $USD pair directionals? I find them to be a more consistent lead indicator than most news headlines.
I'm observing periods where $ES futures seem to have an inverse correlation with the $USD Index. When equity futures dip, the USD tends to strengthen as a safe haven. Is this a consistent theme for others, or more intermittent? Any specific market conditions where this correlation is more pronounced?
Just a reminder that NFP is coming up this Friday. Expecting volatility across all $USD pairs. My focus will be on $EURUSD and $USDJPY for potential reactions. Don't forget to manage your risk.