Yesterday was as dire a day's trading as I've seen in a while. Even the recently manic GBP was under restraint and volatility holders must have endured an expensive 24 hours. In the hope that with only two weeks to the referendum GBP/USD resumes headless chicken mode suggests once again that looking to fade a decent move in either direction, 1.4350 or 1.4650, could be the way to go. EUR/JPY couldn't make it to the 122.20 level even with Wall Street pushing towards all-time highs and selling at 122.00 will still prove tempting if seen again as this one looks as if the only factor holding it up is the proximity to multi year lows.
For all the recent lethargy in the market, we might have some decent action just round the corner. Gold has suddenly put a spurt on and CHF has strengthened even into apparent SNB interest. This tells me that a decent dose of inflation is on its way. It would in fact be remarkable, with the oil price higher on a daily basis if it didn't feed through to inflation. Those of us who can remember 3 Base rate hikes in a day will know how hard it is to get the inflation genie back in the bottle once it is out! Central Bankers have been telling us how good inflation is for economies, we might find out quite shortly how good a lot of it is - not very! IJ.