Following this week’s strong U.S. economic releases, the U.S. Dollar failed to gain any traction.
Summary of economic releases so far:
- January’s Producer Price Index rose 0.3% beating the 0.1% expectations
- CPI also rose 0.6% beating the 0.3% expectations
- Retail sales climbed 0.4% beating the 0.1% expectations
- Major surprise in Philly Manufacturing Index rose to 43.3 almost doubling previous 23.6
Despite January figures consistently meeting expectations, one major risk ties into Trump’s legislative reform.
Aside from attacking policies and “issues” (taken with a grain of salt), Trump has failed to reveal any major legislation for 2017. There has been very little to no mention of plans for tax reform, healthcare, financial institutions, and jobs creation.
Current trade setup I’m looking at is a short potential on the USDJPY pair as it makes another leg lower.
Currently, I consider this as a very short scalp trade potential.2