Daily thread to exchange ideas and to share your thoughts
The dollar was weaker in month-end and quarter-end trading yesterday but we are seeing some of that drop retrace as we get the new day started.
The market is also adopting a bit more of a defensive tone going into European trading, with US futures down 0.5% to 0.6% after the dressing period yesterday.
The yen is also keeping slightly firmer in general, with USD/JPY backing off a push above 108.00 and looking back below its 100-day moving average.
EUR/USD is also keeping back under its key hourly moving averages now with cable also threatening to do the same, as the overnight flows start to fade.
The focus in the market now turns back to virus developments and also the US jobs report tomorrow. Again, do be reminded that we will be observing a long weekend ahead with the US set to celebrate the 4th of July festivities.
Despite the optimistic mood over the past two days in US equities, I would argue that the continued drag from pessimistic virus headlines will put a cap and limit gains - not to mention that window dressing was a bit of a factor in the last session.
But besides the push lower on Friday - if you need reminding, it was a tough battle for sellers - the downside momentum continues to also stay more limited.
As such, any real trending moves may still require risk to really break out more meaningfully one way or another moving forward.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
