Trade Ideas Q2 2018(April-June) FX

Market Sentiment: Market are priced in for 32% for 3 more rate hikes from FED.US Core
and PCE Y/Y index increased to 1.7% and 2.9%(FED fav indicator for USA inflation).Selling
pressure are expected to increase more in Q2 2018.

Market Fundemental: The FED still focused for 2 more rate hikes but 7 out of 15 FED
members are looking for aggeresive rate hike(at least 3 more).Other central banks are still
on their track to continue the QE.Market fundamental also increased the selling pressure in
Q2 2018.
Possible Outcame from ECB and BOJ for Q2 2018
1.ECB and BOJ : Will hold their view on policy to avoid market disturbances.Expected to
react on Q3 2018 based on market reaction on the development on FED aggeresive rate
hike expectation.