Daily thread to exchange ideas and to share your thoughts
Good day, everyone! Hope you're all doing well in light on the bloodbath we're seeing in global markets right now. It's a torrid day for equity investors and there just isn't anywhere to hide on days like these. Currencies are more mixed on the day but the more accurate snapshot of the moves since the equities rout is one that accounts for yesterday's trading as well:
Major currencies performance against the dollar over the past two days
- Equities are being routed as global selloff continues
- US CPI report at 1230 GMT holds the key for next move in equities/risk
- Commodity currencies recover slightly today but are still down as a whole
- Euro and pound hold steady despite deteriorating risk sentiment
- Dollar fails to hold a bid as market sentiment turns sour
The two things I'm looking at right now in currencies is fading the recovery in the commodity currencies today and the lack of support for the dollar in spite of a risk off mood. The US CPI report will be key to determining the next move in risk sentiment but I find that the move higher in yen pairs make for some attractiveness to sell on the rallies.
Aside from that, there is a distinct lack of appeal for the dollar's allure as a haven currency and that makes an interesting conundrum for US equities too. If money flows are not coming back into the greenback, then it's tough to present a case for a quick recovery in US stocks in this selloff here.
It's an interesting time in markets right now and there isn't any one view that can sum up what is happening really. Follow your convictions and use the charts to define and limit your risk. That's the best advice I can give in a time like this. There is no right or wrong when markets are acting up in such a manner. What are your views on the market right now? Share your thoughts/ideas with the rest of the ForexLive community here.
