Day ahead in the FX market, Thursday December 20th

  • Main event later today will be the BOJ rate announcement and statement:
  • Professional speculative market is very short of Yen so may see short-covering if BOJ disappoints:
  • EUR staying strong across the board with EUR/JPY consolidating near 112.00 whilst EUR/AUD and EUR/GBP make decent gains:
  • EUR/USD should find willing buyers on any pull-backs to previous highs at 1.3170:
  • Cable stalled again near 1.6300 and this level is attracting plenty of selling interest:
  • AUD/USD looks to have more downside risk after the break back below 1.0510:
  • USD/JPY continues to trade in a bullish fashion, currently consolidating near Monday’s highs at 84.40:
  • RBNZ business confidence and China’s leading indicator are the highlights on the Asian economic calendar.
  1. BOJ Disappointment is the game i will be playing via short AUD/USD and AUD/JPY. I have built up some nice EUR/AUD positions as well under 1.2500. Very solid buying on dips so far. As to where the EUR/AUD gains will come from i think mostly from AUD/USD selling but also if the Euro Rebound has more legs then gains like we have had in last 3 days should continue.

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