As of right now…
Strength analysis USD,JPY,CAD. USD is supported by strong expectations of more rate hikes this year relayed by strong US economic data and overheating inflation. JPY is being supported by geopolitical tensions even though BOJ stated it isn’t backing off its stimulus program anytime soon. Watch JPY as potential strength in coming months as Japanese economy flashing improvements and market sentiment not buying BOJ’s stimulus program continuation. CAD being supported by strong economic data and higher oil prices.
Weakness analysis GBP, CHF, EUR, AUD, NZD. AUD & NZD both reporting weak economic data and validated by both central banks not forecasting rate hikes until next year. EUR also reporting weak economic data along with disappointment from ECB of a much later time schedule for its first rate hike. QE removal is already priced into the EUR. CHF is tied to the EUR performance still… Where ever EUR goes, does the CHF. GBP reporting weak economic data too, economy showing signs of slow down.
Long USD against all majors except for JPY & CAD.
Trade what you see, not what you think!