UK release some CPI and PPI data a while ago at 2PM (GMT+8). Sterling is currently moving positive against USD and JPY and negative against AUD and NZD. It seems that the market is still on a risk-on scenario.
However, it is important to not that equities last night closed flat after FED Chairman’s testimony. This may provide guidance that the FED failed to ignite the bulls’ appetite. Futures is also flat.
Sterling play I am seeing is a short against safe havens USD or JPY when it rallies to bargain levels.
Given DJI Futures pulling back from resistance and walking on a tightrope, my forecast is for the market to generally be risk-off.
Play is a GBPAUD Long at 1.82, SL -25pips, TP +100. Judging by the charts, this pair seems to provide the least resistance compared to going short GBPUSD.