A couple of weeks ago I commented how earnings season was once again slipping under the radar. That came to a crashing halt last week as Microsoft's AI spending came under scrutiny, the narrative has continued this week with Amazon and Alphabet. The market is questioning if companies are spending so much, it's going to the a lot longer than initially thought for returns to hit the baseline. Stocks are under pressure, with the NASDAQ in particular falling hard. We've had the classic stocks down, yields down =risk off.
With continued mixed messages from Japan (rate hikes along with fiscal stimulus) the USD has been the beneficiary of the negative environment.
The question now is, how sustainable is the negativity? Is a 'risk off' trade viable? Perhaps GBP USD short following the slightly dovish BOE.
Or will the mood stabilise? Leading to a 'risk on' trade, possibly AUD JPY long or arguably another USD JPY long.
For now, I don't quite have confidence in either possibility and I'm content to wait for a bit of fresh impetus in either direction.
With continued mixed messages from Japan (rate hikes along with fiscal stimulus) the USD has been the beneficiary of the negative environment.
The question now is, how sustainable is the negativity? Is a 'risk off' trade viable? Perhaps GBP USD short following the slightly dovish BOE.
Or will the mood stabilise? Leading to a 'risk on' trade, possibly AUD JPY long or arguably another USD JPY long.
For now, I don't quite have confidence in either possibility and I'm content to wait for a bit of fresh impetus in either direction.
johnelfedforexblog.ghost.io
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johnelfedforexblog.ghost.io
Join the mailing list to learn fundamental trading.
Join the mailing list to learn fundamental trading.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.