Further medium term US$ weakness looks possible although heading into the weekend we may be in for a fairly rangebound session, with not too much data on tap and with little interest likely from the US. Yen strength in particular appears to be a likely theme in the days ahead and some covering of existing short Yen positions would not surprise for Friday which may keep the US$ and the Yen crosses under downside pressure. The commodity bloc currencies also look as though they are in for some minor gains over the next few days. The other trade that I like is in WTI, which seems to be about to test the major resistance at 58.85, above which would open 60.00+. I don’t think it will be an easy run as we are approaching some bearish divergence on various time frames, but buying dips is preferred.
In the absence of the US today, I think it will be mostly rangebound, so no trade ideas for Friday.