Another day and another rally in US stocks. The SPX ticked higher closing just shy of the all important 2500 level. The USD also continued its recent rally, as the momentum (at least for the time being) is back to the upside.

Most of the attention for forex trades turns to the Bank of England and what the call is going to be on interest rates. The suggestion at this point is that rates will be left on hold, but that hasn’t stopped the GBP from rallying strongly over the last week or two. We also have the CHF in play with their rate decision.

The Aussie will also be in focus as the latest employment figures are released at a time when the AUD is grappling with the 80 cent level.

Again it’s looking like another busy day for forex traders.

Key Economic Data at a Glance

AUD – Employment Change

CHY – Industrial Production

CHF – Interest Rate Decision

GBP – Interest Rate Decision

USD/JPY – 240 min Chart

USD/JPY – Rally Continues

As has been the story of the week, the USD has rallied and safe havens have fallen right off the pace. This isn’t surprising considering the slew of news flow that helped prop up the Yen, Swissy and Gold.

For now, we have to ride the momentum. As predicted we took out 110.50 in the USD/JPY. We’ve pulled back slightly on the 240 min chart and it looks like this might be a good time to aim for a test of 111.00.