For all of our high hopes, this week hasn’t delivered the volatility we were expecting after Yellen’s testimony. If anything the delivery was mildly dovish and there has been a rally in US interest futures. As you would expect with lower rates stateside, the US$ is modestly weaker since. We still want to buy Cable on setbacks and sell AUDUSD on rallies, but strategically want to keep our powder dry in a trendless environment. Charts show USDJPY, but similar for DollarIndex and EURUSD. Cable is the trade we missed this week.



0226USDJPYDaily - trendless       0226USDJPYWK - unchanged