Lots of Brexit headlines this week have knocked the pound off its perch but I am going to stick to my guns and look for attractive levels to re-enter my long cable play. It’s Friday, and there will no doubt be plenty more Brexit headlines in the UK weekend papers, so I prefer to wait

The 2 big drivers in the FX market over the last few weeks have been the semi-official Japanese buyers of AUD bonds driving AUD/JPY higher, and the reserve managers buying of EUR/USD after the EU bail out announcements. My targets have been reached in Cable @1.32 and AUD/USD @ .72 and I now feel that

Back in the good old days, if silver made 10% gains then the GBP would follow suit but the times they have a changed! The pound has been lagging the other majors (bar the JPY which is on strike!), and it’s close to major support levels against the EUR and the AUD. I’m in the

The signs from the crosses such as GBP/AUD and EUR/GBP are bullish for the pound and I am starting to ramp up my cable position. This is always the most dangerous time when it comes to position building, as if I get the timing wrong then it’s easy to get stopped out. I have started

I’m long cable and 100 pips out of the money. Not an unusual occurrence by any means as in my experience this is one pair which tends to overshoot expected levels by significant amounts. But, my confidence levels are receding as I’ve watched and seen the pound continue to slip against the EUR, JPY and

For once in my life I’ve been patient and cable has pulled back to what I consider to be ‘good value’ levels. The pound has also some decent support levels nearby on the crosses with EUR/GBP resistance at .9050 and GBP/AUD support at 1.8050. I’m hoping that 1.2350/1.2400 should start to build a base and

My overall big-picture view remains the same. The USD will weaken and I’m looking for good medium-term entry levels back into long AUD/USD and long cable positions. My shorter-term view is a bit different and I expect some noisy sideways markets just like we have seen in the last week or so. We’ve just seen

AUD/JPY has fallen off faster than I had anticipated which has given me my hoped-for dip in AUD/USD and cable. It’s Friday and Wall Street had another shocker overnight, which means that the risk off plays will be front and centre. I’m not exactly sure how far we can go but I hope to start

I have been probing AUD/JPY shorts since yesterday as the recent move higher felt overdone. That said, I’m only jumping in and out for quick wins and keeping my ammunition dry for further cable and AUD/USD longs. Cable is still my preferred play and I’m hoping to get back on the long trade somewhere on

The AUD/USD is leading the way again as a new trading week gets underway and those who have missed out on the move might get some more joy by focusing elsewhere. Cable is underdone in my biased view and has some catching up to do. There is always the risk of some Brexit headlines knocking

At risk of repeating myself once too often, I think the market’s reasoning behind buying the USD is deeply flawed and I am looking for opportunities to build medium-term USD shorts against one of the other majors. The move back above 1.10 in EUR/USD is pivotal in my view and I expect to see further

I’ve been getting chopped around a bit over the last couple of weeks with the big Algos seemingly back in charge and tying the market into their beloved ranges. That said, I am seeing nothing to dissuade me from my view that the USD will be taking some big falls in coming months and I

I was very bullish cable to start the week and I’ve obviously been totally wrong on that one. This may be just another stop-loss squeeze but the daily close below 1.2250 has the overall picture looking potentially bearish. I’m stepping aside on cable for now and will await further signals. The AUD/USD has held up well

EUR/JPY is back at levels last seen over 3 years ago and this is putting the other JPY crosses under pressure as well. USD/JPY has been relatively liquid over the last few months, bar a few nasty spikes down and up, which suggests to me that positioning is not at extreme levels and we are

Last week’s AUD trade worked out nicely but let’s not get too carried away with the bear trade; the AUD/USD is still primed for a move to .73/.74 over the next few months and I am hoping to ride the waves on the way there. I have exited my short AUD/JPY trade and am looking

I’ve been playing the AUD from the long side for the last 5-6 weeks but the little Aussie battler is starting to feel quite overbought especially on the crosses. I have exited my AUD/USD longs and am dipping my toes into some short AUD plays, albeit with very tight stops. AUD/JPY is my preferred play

I don’t see anything to change my medium-term macro view that the USD will come under increasing pressure in the months ahead. The market has had another look at the “Euro demise” trade but this got very overcrowded and is starting to unwind after the EZ fiscal stimulus package announcement. AUD/USD is still my favourite play,

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