The Week Ahead
What a manic week!
Last week the post was pretty concise as we were waiting for the CPI data.
“My targets for the S&P e-mini this week are: 3550, 3480”
3550 was met
“FX wise… as I mentioned I expect a continued bid into the dollar. If this were to happen, GBP/USD could trade ~250 pips lower to ~1.085 and EUR/USD ~130 pips lower @ 0.96. USD/JPY I believe can/will breakout with force to the upside and see ~147.”
All were met bar cable, the low of the week was 1.09. However, the UK tax u-turn helped the pound stay green for the week against the greenback.
I think the move post-CPI was technically driven, many participants added to their shorts post the CPI data. As the market started to move against them they quickly began to cover and CTAs started to fly in on the strong up-tape. I also believe that 10 mins prior to open on Thursday we saw some sort…