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.

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