Silver price (XAG/USD) depreciates by 1.75% after three days of gains, trading around $79.30 per troy ounce during the European hours on Wednesday. The price of the grey metal declines as investors lock in profits following its rally toward record highs.
The dollar-denominated precious metals, including Silver broadly pulled back as the US Dollar (USD) strengthened ahead of the upcoming US key economic data that could shape expectations for Federal Reserve (Fed) policy.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the second successive day and trading around 98.60 at the time of writing.
US ADP Employment Change and ISM Services Purchasing Managers’ Index (PMI) data for December will be eyed later in the day. Traders will shift their focus toward the US Nonfarm Payrolls (NFP) due on Friday, which is expected to show job gains of 55,000 in December, down from 64,000 in November.
Fed Governor Stephen Miran said on Tuesday that the US central bank should cut interest rates aggressively this year to sustain economic momentum, while Minneapolis Fed President Neel Kashkari warned the unemployment rate could “pop” higher. The CME Group’s FedWatch tool suggests Fed funds futures continue to price in about an 82.8% probability that the US central bank will keep rates unchanged at its January 27–28 meeting.
The safe-haven Silver struggles amid increased risk appetite as traders have so far largely shrugged off escalating geopolitical tensions worldwide following the United States (US) intervention in Venezuela and the capture of President Nicolas Maduro.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Salesforce (CRM) stock price recorded further gains in its latest intraday trading, following its rebound from the support of its SMA50, which provided the stock with positive momentum that helped drive these gains. This move comes alongside the stock retesting a previously broken short-term downward trend line, while the RSI has reached extremely oversold levels compared to the stock’s price action, indicating a rapid buildup of additional positive momentum in the near term.
Therefore we expect the stock price to rise in upcoming trading, provided that the $252.30 support level holds, to target the $296.00 resistance level.
KUALA LUMPUR, Malaysia, Jan. 7, 2026 /PRNewswire/ — USANA Malaysia has once again been awarded the title of Top #1 Combination Dietary Supplements in Malaysia by global market research leader Euromonitor International. This achievement marks eight consecutive years that the market has earned the top spot in the combination dietary supplements category.
These distinctions are based on Euromonitor International’s market research measuring USANA’s retail value share among all supplement brands in Malaysia*.
USANA Malaysia Named #1 Combination Dietary Supplements Brand by Euromonitor International
“Being recognized for eight years in a row is a powerful testament to the trust consumers place in our products,” said Vivienne Lee, USANA Regional Vice President. “Earning continued recognition in the combination dietary supplements category reflects USANA’s unwavering commitment to quality, science, and excellence.”
Euromonitor International is the world’s leading provider of global business intelligence, market analysis, and consumer insights. With analysts based around the world, Euromonitor combines global expertise with deep local insight to help organizations anticipate industry, economic, and consumer trends.
“I would like to express my sincere gratitude to our loyal customers and the entire USANA family,” said Sabrina Khoo, Regional General Manager. “Your continued trust and support have made this eight-year milestone possible. Together, we will continue empowering individuals to support their health and wellness with high-quality, science-backed nutrition.”
To learn more about USANA and its line of award-winning products, please visit USANA.com.
*Source: Euromonitor International Limited; Combination Dietary Supplements; % retail value share, 2018 -2025 data. CH2026ed.
About USANA
USANA (NYSE:USNA) has been providing premium-quality nutrition and lifestyle products for more than 30 years. From its award-winning supplements manufactured in its FDA-registered facility to its cutting-edge Celavive skincare and healthy living products, USANA is committed to empowering people to live healthier, more vibrant lives.
Whales are accumulating while retail takes profits, and historically speaking, that’s the recipe for explosions in crypto. According to on-chain data, large holders scooped up above 56,000 BTC (over $5.3 billion) since mid-December, marking crypto’s local bottom. Retail is selling into strength, expecting a “fool’s rally,” and at times like these, markets tend to head in opposite directions to small wallets.
If you’re following Dogecoin price predictions, technicals are flashing green, and DOGE just triggered a structural breakout from its descending triangle. But while meme coins offer volatility, DeepSnitch AI offers AI-powered utility at $0.03269, above $1.09 million raised, and its full launch is coming up quickly in 2026, after which a 100x run (or more) is entirely plausible for this token.
Bitcoin primed for new all-time high
On-chain analytics show that whales and sharks have accumulated above 56,000 BTC since mid-December, worth over $5.3 billion at current prices. That buying spree marked what many consider crypto’s local bottom. Now, retail traders are taking profits, convinced this is just a “fool’s rally.” This is a moment where past experience tells us markets are likely to diverge from small wallets.
Fund manager Bill Miller IV added fuel to the bullish case fire, as he told CNBC that Bitcoin “looks ready to go again,” pointing to technical alignment and SEC Chair Paul Atkins’ comments that capital markets are migrating on-chain. Fundstrat’s Tom Lee echoed the sentiment, citing institutional adoption and US government support as tailwinds that should help Bitcoin recover through 2026. Neither seemed particularly worried about last year’s 6% dip.
And then there’s the AI landscape, where Nvidia CEO Jensen Huang declared that demand for computing resources is “skyrocketing,” with AI model requirements growing 10x every year. That kind of growth directly benefits AI and crypto crossover projects.
Meme coin momentum vs presale asymmetry and where the next cycle’s leverage lies
1. DeepSnitch AI
For anyone deep into Dogecoin price prediction, it’s worth noting that while DOGE needs fresh billions just to move meaningfully, and PENGU keeps fighting its own supply pressure, DeepSnitch AI is priced at a level where even steady uptake can cause wild gains, even a moonshot.
Recent DeepSnitch AI updates all point to the credible truth that this is a rare token, a presale built around delivery with no smoke-and-mirrors and tools already shipping and working with power. More than $1.1 million has already been raised from investors who are done being used as exit liquidity, and the development cadence reflects that focus on speed and execution.
Among its already-running tools, SnitchGPT is turning on-chain questions into real-time answers, while SnitchFeed and SnitchScan tie everything into one intelligence core, so users analyze signals directly instead of skimming endless feeds.
The presale has now moved into Stage 4, the token price has lifted to $0.03269, and earliest buyers have seen 115% gains already, along with early access to the internal platform. And that’s all happened while the token is still in presale.
As the broader market starts to stabilize, DeepSnitch AI sits at an early entry point into a platform tackling one of crypto’s most persistent problems, giving retail traders visibility and leverage in a market long dominated by whales and algorithms.
Staking is active as well, with uncapped, dynamic APR that adjusts as participation grows, and it hasn’t touched exchanges or mass awareness yet. Its launch is just around the corner, and presale holders get first access, with the earliest buyers standing a chance of seeing the best of its 100x, potentially 1000x, gains after that launch.
2. Dogecoin
As DOGE broke above its descending triangle around $0.1513 today, a pattern that kept a lid on Dogecoin price predictions for weeks, the token’s corrective phase is wrapping up.
This is a textbook moment, where former triangle resistance now acts as support around $0.15, momentum indicators turning bullish after the confirmed structure break. Dogecoin price predictions anticipate somewhere between $0.20-$0.25 in the near future, if Bitcoin pushes toward new highs.
DOGE hit $0.48 at its last cycle peak, meaning a return would represent roughly 3x gains. The above $25 billion cap offers liquidity, but this isn’t explosive upside compared to a token like DeepSnitch AI.
For those keeping up with the Dogecoin technical analysis but really wanting moonshots, DOGE’s best days of 100x Dogecoin price trends may be behind it, so it’s wise to look elsewhere (unless steady, incremental gains are what you’re aiming for).
3. Pudgy Penguins
Pudgy Penguins is riding the meme coin recovery and doing it with style. It jumped above 5% to around $0.01306 on January 6 as part of a weekly surge near 50%, outperforming larger names like DOGE and SHIB as risk appetite returned.
Pudgy Penguins NFT sales rose around 50% recently, and the token saw momentum on the back of that event. At prices around $0.013, PENGU sits well below its $0.72 all-time high, offering meaningful recovery potential if meme mania returns.
Above 180% annual supply inflation creates headwinds, though. As DOGE chart patterns indicate, meme coins broadly benefit when Bitcoin rallies, but PENGU’s smaller cap means sharper swings both ways, and neither delivers the asymmetry of DeepSnitch AI.
Last reflection
Whale accumulation, Bitcoin’s breakout, and meme momentum are promising developments. Meanwhile, recent DeepSnitch AI updates point to a presale that’s lining up something much bigger for 2026.
Progress so far has been driven by execution, with live AI tools already running and a launch setup that’s coming together quickly. Early presale participants are sitting on gains of around 115%, reflecting how fast momentum has built at this stage.
DeepSnitch AI is shipping, staking, and priced for launch. To buy in early and see the best of a plausible moonshot run-up in 2026, check out the official presale and follow X and Telegram for further updates.
FAQs
What is the Dogecoin price prediction for 2026?
The Dogecoin price prediction anticipates the token reaching $0.20 to $0.25 if Bitcoin rallies, but DeepSnitch AI offers presale pricing with more upside ahead of its imminent full launch.
Which Dogecoin chart patterns matter most?
The descending triangle breakout is bullish, as far as the Dogecoin price prediction is concerned. DeepSnitch AI’s presale structure offers entry before mainstream price discovery, so it has a different technical edge with higher return potential.
What are some better Dogecoin alternatives?
DeepSnitch AI provides asymmetric upside backed by live AI tools, and with an imminent launch coming along, this is a token with powerful gain potential, the kind of utility meme coins lack.
NEW YORK, Jan 7, 2026, 15:34 (EST) — Regular session
Key points:
U.S. front-month natural gas futures rose about 6% to around $3.55 per mmBtu on Wednesday.
Weather outlooks are turning choppier, with colder risks building for mid-January in key demand regions.
The next catalyst is Thursday’s EIA storage report, a key gauge of winter withdrawals.
U.S. natural gas futures climbed nearly 6% on Wednesday, rebounding from a $3.35 close a day earlier as traders leaned on a colder mid-month weather picture. The front-month Henry Hub contract was around $3.55 per million British thermal units (mmBtu), after trading between $3.42 and $3.59 on the day. Investing
The bounce matters now because the market has been trading the weather first and everything else second. A few warmer model runs have been enough to push prices down sharply; a colder run can flip the tape just as fast, especially when storage data is due.
Natural gas demand in winter hinges on space heating and power burn, and traders often translate that into “heating degree days” — a rough measure of how much heating demand temperatures imply. When the market starts arguing over a mid-month cold shot, the storage math for the next couple of weeks moves with it.
The National Weather Service’s Climate Prediction Center said a pattern shift should drive a downward temperature trend across much of the East, even as the early part of the outlook window stays mild. The agency’s discussion flagged the best odds for colder conditions expanding later in the period across areas east of the Rockies, a setup that typically pulls more gas into residential and commercial heating demand. Noaa
Commodity Weather Group said colder conditions are now projected for parts of the Midwest and East Coast around Jan. 17–21, and Barchart said that helped trigger short covering in natural gas. BloombergNEF estimates cited by Barchart put lower-48 dry gas production at 112.6 billion cubic feet per day (bcfd) on Wednesday, with demand at 89.5 bcfd and LNG net flows to U.S. export terminals at 18.4 bcfd. Barchart
LNG remains a swing factor in the broader price outlook, even when the day-to-day trade is weather. EOG Resources finance chief Ann Janssen said on Wednesday that the buildout of liquefied natural gas infrastructure could eventually lead to oversupply and weigh on natural gas prices. Reuters
The next hard datapoint is storage. Working gas in U.S. storage was 3,375 billion cubic feet (Bcf) as of Dec. 26, down 38 Bcf on the week and about 1.7% above the five-year average, EIA data showed; the next report is scheduled for Thursday. Eia
Technically, Wednesday’s range puts the market back within sight of the $3.60 area, with support building around the mid-$3.40s. But the downside case is still simple: if warmer forecasts reassert themselves and withdrawals stay light, futures can slip back toward the low-$3.30s quickly.
Traders are watching Thursday’s EIA storage release — normally published at 10:30 a.m. Eastern on Thursdays — for confirmation that colder risks are translating into bigger draws, and whether the weather models hold onto that mid-January chill. Eia
Małgorzata (Gosia) K. Citko-DuPlantis, University of Tennessee, The Conversation
One of Japan’s most recognizable cultural practices – the Japanese tea ceremony, known as chanoyu, or chadō – is being reshaped by tourism, wellness culture and social media.
The Japanese tea ceremony is deeply rooted in the ideals of Zen Buddhism, but the current matcha hype has little to do with the tea ceremony. Green tea has become part of the on-the-go coffee culture. On social media, a centuries-old spiritual practice is compressed into a 15-second reel.
As a scholar of premodern Japanese literature and culture, I know that this commercialization is not without tension. The reflective values of the Japanese tea ceremony trace their origins to a monastic routine.
History of the Japanese tea
Tea arrived in Japan from China in the eighth century. Emperor Shōmu served powdered tea, an ancestor to what we today know as matcha, to Buddhist monks in 729 C.E.
Around the end of the 12th century, the practice of serving tea became more widespread after the Zen monk Eisai returned from China with matcha tea seeds from the plant that was to become the source of much of the tea grown in Japan today. He also brought with him the knowledge of how tea rituals were practiced in Chinese Buddhist temples.
Wild tea grew in Japan, but the tea grown from Eisai’s seeds became known as “honcha” or true tea. Matcha soon spread through Zen monasteries, where it was believed to generate greater enlightenment than long hours of meditation.
As Zen Buddhism gained influence among the warrior class in the 13th century, monks carried tea culture beyond temple walls. In 1483, Ashikaga Yoshimasa – Japan’s military ruler, or shogun, who was also a patron of the arts, constructed one of the earliest tearooms. The tearoom was inside his villa in Kyoto, later known as the Temple of the Silver Pavilion or Ginkakuji. There, the tea ceremony was both a contemplative act and an occasion to display Chinese calligraphy, paintings and ceramics.
What matters is the moment
The most transformative figure in the history of the Japanese tea ceremony was a 16th-century tea master, Sen no Rikyū. Rejecting ostentation, he favored locally made utensils, rough ceramics, and small, rustic spaces designed to quiet the senses.
Westerners hated matcha when they first tried it.
This aesthetic and moral principle – known as “wabi” – valued imperfection, humility and mindful presence. Grounded in simplicity, wabi guided everything from the size of the room to the angle of a flower stem.
Serving as tea master to military leaders, or shoguns, who supported his activities, Rikyū transformed the tea ceremony to reflect ideals of wabi.
cha no yu to wa tada yu o wakashi cha o tatete nomu bakari naru koto to shiru beshi
To understand the tea ceremony Is simply this: Heat the water, Whisk the tea, And drink.
The poem’s clarity echoes a foundational sensibility of the tea ceremony: what matters is the moment itself.
Rikyū’s grandson Sōtan and his three sons carried on the traditions of tea ceremony. Their three schools – Ura Senke, Omote Senke and Mushanokōji Senke – differ in tea whisking styles, utensils they use and levels of formality, yet continue to preserve Rikyū’s principles to date. All three schools have headquarters in Kyoto.
The ritual of impermanence
The manner of preparing powdered green tea depends on the techniques and practices of the various schools. The following description is based on the Ura Senke way of preparation.
A full tea gathering, or “chaji,” may last several hours. Every choice – from utensils to food to flowers – reflects the season, time of day and purpose of the occasion, whether welcoming guests, marking a farewell or observing a celebration.
A Japanese tea ceremony and the power of simplicity.
The ceremony takes place in a tearoom or “chashitsu,” decorated only with a hanging scroll and a single flower – both selected to set the gathering’s spiritual tone.
Guests assemble in a waiting room and taste the hot water used for tea. They then proceed along a water-sprinkled garden path meant to wash away the “dust” of the outside world.
After greeting the host, they cleanse their hands and mouths and enter the tearoom through a small door, the “nijiriguchi.” The passage from the ordinary way of the world to the contemplative way of tea symbolizes humility.
Inside, they admire the scroll, kettle and hearth before taking their seats.
In the guests’ presence, the host builds the charcoal fire and serves a carefully prepared seasonal meal: rice, soup, seafood or vegetables, pickles, sake and a principal sweet.
When the meal ends, the host briefly re-enters alone to replace the scroll with flowers, sweep the room and arrange the utensils for “koicha,” the thick tea that forms the heart of the gathering. At that time the guests have been asked to leave the room. They re-enter once the bell or gong is run. The host reenters the room as well with chawan – the whisk – and all the utensils; the tea is served.
A jar of fresh water representing yin is paired with the fire’s yang. Yin (feminine) and yang (masculine) are two opposing yet complementary forces in Chinese philosophy that represent the duality and balance found in the universe. The tea jar or “chaire,” wrapped in silk, is set out on a stand chosen for the occasion. A gong or bell summons the guests to return.
The host enters with the tea bowl or “chawan,” a white linen cloth, a whisk and a bamboo scoop. Each utensil is cleaned, and the bowl is warmed, dried and filled with three scoops of powdered tea before hot water is added and kneaded with the whisk into a smooth, thick mixture. The single bowl is shared among all guests, then returned to the host. The tea jar and scoop are cleaned and presented for close viewing.
The charcoal fire is built again for “usucha,” or thin tea, which gently prepares guests to return to everyday life. Thin tea is prepared in a way similar to that of thick tea, except that less tea powder, and of a lower quality, is used. Dry sweets accompany this lighter, frothier tea, served in individual bowls. When the final cup is finished, guests express their gratitude, depart along the garden path and leave the host watching quietly from the tearoom door.
Underlying the entire ritual is the principle of “ichigo ichie” – “one time, one meeting.” No gathering can ever be repeated. Every season, every person, every breath is singular.
The tea ceremony, often translated in English as “the Way of Tea,” trains participants to feel that fleetingness, to hold the moment warmly and attentively before it dissolves.
The rise of global matcha culture
Today, the tea ceremony lives a double life. While traditional schools continue to teach Rikyū’s disciplined aesthetics, matcha has entered its global afterlife of commercialization and popular culture.
A traditional Japanese tea set for making matcha green tea. AP Photo
Małgorzata (Gosia) K. Citko-DuPlantis does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Notably, Pump.fun booked its highest single-day volumes at $2 billion, although trading fees are still relatively low.
Fees are often the primary driver for an increase in $PUMP’s price. If these higher volumes translate into a larger number of tokens being created through the platform, that could result in a significant price expansion for this platform’s native asset.
Despite this uptick in DEX volumes, we can still see that weekly transactions remain heavily depressed compared to the days when SOL was rising above $180. Back then, weekly transactions peaked at 816 million in late July.
The price went on to climb to $240, but that uptick became unsustainable as transactions started to drop sharply.
Data from Artemis2 shows that weekly transactions currently sit at 487 million, or 40% below that recent peak. Hence, unless we start seeing network activity pick up dramatically, SOL’s latest recovery could still be categorized as a bear market rally.
SOL Reversed Its Downtrend, But How High Can It Go?
After breaking out of its falling wedge, Solana seems headed to retest the $160 area. This is a level where a former area of support and the 200-day exponential moving average (EMA) are in confluence, which increases its technical relevance.
Cardano founder Charles Hoskinson says the network’s next growth phase depends on real DeFi usage rather than market hype. In a recent interview with Altcoin Daily, he said Cardano must post stronger on-chain numbers to compete with larger ecosystems. He pointed to user activity, capital flows, and stablecoin growth as the core signals that could define the network’s future direction.
Hoskinson said narrative cycles no longer provide enough momentum for Cardano. Instead, he said measurable DeFi performance must guide the ecosystem’s next stage. Those figures, he noted, should appear clearly on-chain.
He added that has reached its limits as a standalone layer-1 network. To move forward, he said the ecosystem must lean harder into decentralized finance activity. That shift, he argued, could reset growth expectations.
DeFi Numbers Seen as the Primary Growth Trigger
said Cardano’s monthly active users, total value locked, and stablecoin supply must grow sharply. He stated that these metrics need to increase between 10x and 100x from current levels. Such expansion, he said, would place Cardano closer to leading ecosystems.
He directly compared Cardano’s position with Ethereum and Solana. He said those networks already show stronger DeFi activity across key indicators. Cardano, he added, must now match those benchmarks.
Recent actions aim to close that gap. The Cardano Foundation committed eight-figure ADA funding to support stablecoin DeFi liquidity. The move seeks to increase usage and attract deeper capital pools.
Stablecoins and Liquidity Efforts Gain Focus
Hoskinson said the ecosystem plans to onboard major stablecoins this year. He named USDC and USDT as targets for integration. He said their arrival could improve traction across DeFi applications.
Stablecoin growth, he noted, ties directly to higher transaction activity. That activity, in turn, affects user retention and capital efficiency. He said those links matter for sustained expansion. These liquidity efforts align with broader ecosystem goals. Hoskinson said stronger stablecoin flows could support lending, trading, and payments. Such use cases could lift Cardano’s core DeFi metrics.
Midnight Tied Closely to Cardano’s Expansion Strategy
Hoskinson described Midnight as part of Cardano’s growth plan rather than a separate bet. He said the privacy-focused sidechain represents a new generation of cryptocurrencies. Its design, he added, serves emerging market needs.
He said Midnight could capture a share in the privacy niche if development moves quickly. That progress, he argued, could draw users from , XRP, and other chains. Those users could then interact with Cardano-based DeFi.
Hoskinson said decentralized applications could benefit by integrating with Midnight. By adding privacy features, he said apps could attract new user segments. Could this hybrid approach deliver the next million users and reshape Cardano’s DeFi metrics?
Also Read:
Conclusion
Charles Hoskinson says Cardano’s next phase depends on measurable DeFi expansion rather than . He points to higher TVL MAU and stablecoin supply as core targets. Integration with Midnight could attract new users and liquidity. The takeaway is clear: on-chain results must now drive Cardano’s growth story.
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The GBPJPY pair ended the last bullish rally by recording 212.15 level, to bounce directly to settle near 211.30, which formed strong obstacle against the bullish attempts.
Note that the stability within the main bullish levels and forming extra support at 211.30 level, which makes us wait for gathering bullish momentum to reinforce the chances of recording the target at 212.55 and surpassing it might extend trading towards 213.75, while reaching below 211.30 and providing negative close will confirm delaying the bullish attack, to begin forming temporary corrective wave, to target 210.65 and 209.90 level.
The expected trading range for today is between 211.00 and 212.50
I am not interested in shorting, as the interest rate differential is simply too great here.
The British pound initially pushed higher against the Japanese yen during trading on Tuesday, but has since pulled back just a bit.
All things being equal, this is a market waiting for some type of reason to go higher, and that reason will more likely than not come into play via risk appetite.
Regardless, this is a market that is very obviously strong, and I have no interest in fighting the overall trend.
The market could end up being a scenario where we just remain buy on the dips and slowly grind higher. When you look at the chart, you can see that the Monday session was a serious attempt to break out of a bullish flag, and if we look at that as a bullish flag, then we could be looking at a move to 216 yen based on the measured move.
Carry Trade Momentum
Ultimately, this is a scenario where I don’t have any interest in shorting this market because, quite frankly, I don’t want to pay the interest rate differential. Even though the Bank of England has recently cut rates, it is going to do so very slowly, while the Japanese are supposedly raising rates.
The situation is that the interest rate differential is so wide that it’s going to take a long time for that to truly come into play. You could also make an argument that most traders believe that the Japanese can only raise rates so high due to their debt load. With that being the case, we find ourselves in, and of course, the overall momentum, I think the carry trade is alive and well, and I will continue to take advantage of it by buying the British pound against the Japanese yen going forward.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
