Watching a weaker greenback

The most dominant theme in global markets at the moment is a weaker greenback on the back of Friday’s non-farm payrolls print.

Source: Bloomberg

USD/JPY had rallied to ¥119.96 heading into the data and this morning dropped to ¥118.26. Last week my trade suggestion to go long on USD/JPY was triggered and despite the pullback I remain happy holding on to the position. Japan is closed today and while US data is limited, fedspeak is set to ramp up this week. With jobs growth remaining robust and other economic indicators apart from inflation showing positive signs, the divergence between the USD and other currencies is likely to continue widening. As a result, I’m happy to let the stop continue to dictate how the trade travels and will update it should anything materially change.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.