Fresh from the Trading Room
The opinions expressed in this report are those of Inspirante Trading Solutions Pte Ltd (“ITS”) and are considered market commentary. They are not intended to act as investment recommendations. Full disclaimers are available at the end of this report.
Executive Summary
In the August 2 report, Inspirante Trading Solutions explores the divergence in major central banks’ monetary policies, and how such divergence could potentially bring heightened volatility to the FX markets, from fundamental and technical standpoints.
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A Yen for change
Upcoming economic events (Singapore Local Time):
Investors will focus on the inflation and employment data in the next two weeks to gauge the current state of the economy.
Markets in focus
Figure 1 U.S. Dollar Index (DXY)
The U.S. dollar’s recent break of the 100 mark turned out to be short lived, as it promptly bounced above the support and back into the descending triangle.
Figure 2 DXY (Monthly)
When observed over an extended timeframe, the U.S. dollar displays significant cyclical behavior, with most pivotal turning points occurring at approximately three and a half year intervals.
Figure 3 CHF/USD Futures (Monthly)
