{"id":150967,"date":"2019-07-05T08:25:10","date_gmt":"2019-07-05T12:25:10","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=150967"},"modified":"2019-07-05T07:59:02","modified_gmt":"2019-07-05T11:59:02","slug":"the-week-ahead-friday-05th-july-2019-currency-point-in-safety-we-trust","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/the-week-ahead-friday-05th-july-2019-currency-point-in-safety-we-trust\/","title":{"rendered":"The Week Ahead: Friday 05th July 2019 \u2013 Currency Point: In safety we trust"},"content":{"rendered":"<div id=\"inves-3971930760\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">July 5, 2019<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Evan Lucas, <a href=\"https:\/\/www.fpmarkets.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">FPMarkets.com<\/a><\/strong><\/p>\n<div class=\"section-header\">\n<h3>Currency Point &#8211; In safety we trust<\/h3>\n<\/div>\n<p><iframe loading=\"lazy\" id=\"_dytid_4628\" src=\"https:\/\/www.youtube.com\/embed\/PAA15RRGWv8\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p><b>Trade idea: Short GBP\/JPY<\/b><\/p>\n<p>Entry: Above \u00a5135, Stop: \u00a5138.00, Target: \u00a5128<\/p>\n<p>Have been advocating for long JPY positions for a little while now and see an opportunity\u00a0building in GBP\/JPY. The GBP has two very interesting dynamics going against it.<\/p>\n<p>First is UK data which is continuing to deteriorate. Best example of this was the release of its \u2018economic surprise\u2019 index which collapsed to its lowest read since August 2012 (just be for Mario Draghi\u2019s \u2018whatever it takes\u2019 speech). The slowdown in economic activity in the UK has seen the BoE turning decidedly dovish and has caused Mark Carney to elude to possible cuts to UK official interest rates.<\/p>\n<p><a href=\"http:\/\/go.fpmarkets.com\/visit\/?bta=35137&amp;nci=5462\" target=\"_Top\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/fpmarkets.ck-cdn.com\/tn\/serve\/?cid=361646\" width=\"728\" height=\"90\" border=\"0\" \/><\/a><\/p>\n<p>The second dynamic is geo-political, the Conservative Party are due to nominate their new preferred leader in the coming weeks. Boris Johnson is favourite and has promised to<br \/>\n\u2018finalise\u2019 Brexit even if that is a no-deal. Volatility in the GBP is clearly building.<\/p><div id=\"inves-1079158361\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>The other side of the equation is fairly self-explanatory and my reasoning for looking at JPY longs is based on the following reasons: global economic data is softening and fast, the outlook risk assets is weakening while the probability of lower US rates and a steeper yield curve are rising all adding further pressures and will see flows to safe haven assets.<\/p>\n<p><b>Trade risks:<\/b><br \/>\n\u2013 Rebound in global economics<br \/>\n\u2013 BoE moving back to a neutral stance<br \/>\n\u2013 UK political uncertainty resolving itself with a minimal amount of fuss.<\/p>\n<p><b>Trade Idea: (Adding to) Short USD\/JPY<\/b><br \/>\nEntry: Add to position or at or above \u00a5107.8, Stop: \u00a5108.9, Target: \u00a5101<\/p>\n<p>Want to highlight last week\u2019s USD\/JPY call, the trade is working in our favour and actually want to add to the position. There is still plenty of opportunity here with the pair shifting back up to \u00a5107.7 will look to enter all the way up to \u00a5107.9.<\/p>\n<p>The USD in my opinion actually looks very weak at this point in the cycle and even the Non- Farm Payroll won\u2019t change that view as the Federal Reserve is looming large. The cuts are coming it\u2019s just a question of when.<\/p>\n<p><strong>By Evan Lucas, <a href=\"https:\/\/www.fpmarkets.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">FPMarkets.com<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Evan Lucas, FPMarkets.com Currency Point &#8211; In safety we trust Trade idea: Short GBP\/JPY Entry: Above \u00a5135, Stop: \u00a5138.00, Target: \u00a5128 Have been advocating for long JPY positions for a little while now and see an opportunity\u00a0building in GBP\/JPY. The GBP has two very interesting dynamics going against it. First is UK data which [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-150967","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/150967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=150967"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/150967\/revisions"}],"predecessor-version":[{"id":150968,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/150967\/revisions\/150968"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=150967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=150967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=150967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}