The USD/JPY currency pair is approaching a decisive turning point. After months of dollar strength driven by US exceptionalism, sentiment and data are now shifting—exposing the dollar’s vulnerabilities. Meanwhile, the Japanese yen, long considered the laggard, is showing early signs of structural repricing. This article lays out the full fundamental, sentiment, and technical case for a short USD/JPY position. US Fundamentals: Growth Cracks and Twin Deficits The latest US data……
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In the current macroeconomic landscape, the USD/JPY pair stands out as a compelling opportunity driven by policy divergence, structural inflation differences, and sentiment imbalances. With the Federal Reserve holding rates high and the Bank of Japan clinging to ultra-accommodative policy, this trade reflects the fundamental imbalance between two contrasting economic trajectories. Fundamental Analysis Monetary Policy & InflationThe US Federal Reserve continues to hold its benchmark rate at 4.5%, with year-on-year……
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The U.S. dollar is slipping under the weight of softening macro data and deteriorating fiscal dynamics, while the Canadian dollar holds its ground on the back of economic resilience and commodity support. With USD/CAD entrenched in a clear downtrend and macro-fundamentals leaning bearish for the greenback, this pair presents a high-quality short opportunity heading into Q3 2025. Fundamental Analysis The economic divergence between the United States and Canada is becoming……
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The euro is showing signs of fatigue as weak growth, stagnant sentiment, and fiscal imbalances weigh on confidence across the bloc. Meanwhile, the Swiss franc remains a bastion of macro stability, fiscal discipline, and safe-haven appeal. While EUR/CHF lacks the high-beta drama of other pairs, it presents a steady, structurally sound short opportunity. It is ideal for position traders looking to capitalise on prolonged euro underperformance. Fundamental Analysis The eurozone……
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Sterling remains one of the top-performing G10 currencies this quarter, while the Japanese yen struggles under the weight of stagnant macro data and an ultra-dovish central bank. With monetary divergence widening and risk appetite stable, GBP/JPY looks poised for continued upside. This article dissects the pair through fundamental, sentiment, and technical lenses to assess the sustainability of the current rally. Fundamental Analysis The UK economy is defying expectations. Q2 GDP……
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The USD/JPY pair is entering a precarious phase as the U.S. dollar’s fundamental cracks widen and the Japanese yen quietly reclaims ground. With the Federal Reserve facing a macro slowdown and Japan benefiting from external surpluses and stabilising inflation, this currency pair is poised for a shift — one that may favour a tactical short on USD/JPY. Fundamental Analysis The U.S. economy is flashing early warning signs. Quarterly GDP contracted……
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The British pound is emerging as the top-performing major currency, powered by superior macroeconomic fundamentals, a supportive sentiment backdrop, and decisive technical momentum. Among all major forex pairs, GBP/USD presents the most compelling long opportunity—driven by clear policy divergence, resilient consumer dynamics, and a textbook bullish breakout. Fundamental Analysis The UK economy is quietly outperforming. Quarterly GDP growth has climbed to 0.7%, topping the G7 leaderboard. Inflation remains sticky at……
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The CHF/JPY pair presents a high-conviction long opportunity driven by a persistent policy divergence, strong fundamental support for the Swiss franc, and a technically robust uptrend. As the Bank of Japan continues to lag its global counterparts, the Swiss National Bank’s more balanced policy stance and superior macroeconomic footing make CHF/JPY a structurally bullish trade. Fundamental Analysis Swiss Franc Supported by Surpluses and StabilitySwitzerland continues to benefit from exceptional macroeconomic……
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USD/CHF is entering a potentially bullish phase, underpinned by one of the widest interest rate differentials among major currencies and reinforced by diverging inflation trends, sentiment imbalance, and a bottoming technical setup. While technical confirmation is still developing, the fundamentals and sentiment context present a compelling case for a bullish bias on the pair. Fundamental Analysis At the heart of the USD/CHF trade idea lies an exceptional divergence in central……
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The AUD/CAD currency pair is under mounting pressure, reflecting the growing divergence between Australia’s weakening macro backdrop and Canada’s relatively stable economic profile. With Australian sentiment and growth slowing sharply, and technical indicators pointing lower, the bias remains decisively bearish for this cross. Fundamental Analysis Australia’s economy is showing early signs of stagflation. Quarterly GDP growth has decelerated to just 0.2%, while inflation remains elevated at 0.9% month-on-month. Although the……
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