Daily thread to exchange ideas and to share your thoughts
Happy Friday, everyone! Hope you're all doing well as we get things going here on the session. The market focus remains on the dollar and the Fed with the greenback being beaten down to start the day once again, much like yesterday.
That said, just be wary that the bond market isn't as convinced of the Fed pursuing a more aggressive easing policy as Treasury yields are looking more flat after rising overnight. 10-year yields sit just above 2.13% currently, little changed from before Fed chair Powell's first testimony on Wednesday.
As such, that could lend a bit of support for the dollar as traders continue to weigh between what the Fed will decide later this month i.e. between an "insurance rate cut" or potentially the start of an easing cycle in the coming months.
I reckon the Fed keeping markets guessing would mean that they have done their job. After all, the Fed always punts whenever they can afford to or risk otherwise being constantly bullied by markets at every decision.
The issue for us traders is that such a scenario makes it harder to trade as I reckon we'll likely see more choppy price action in the dollar over the next few weeks.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
