Trade ideas thread - European session 13 December 2018
Daily thread to exchange ideas and to share your thoughtsGood day, everyone! Hope you're all doing well as we get things going here in the session. It's been a decent start to the day so far with a couple of notable headlines on risk and Brexit but currencies are starting to liven up on the session in the past hour.
- GBP leads as further gains seen following May's victory; technical cap for GBP/USD?
- AUD, NZD gains as risk sentiment improves, though dealt a bit of a blow moments ago
- EUR gains some ground as Italian bonds rise following revised budget plan
- JPY lags as risk tones in markets are still more positive on the day
The pound's gains here may very well be short-lived if May isn't able to seek the concessions needed from Brussels, which seems to be the likely scenario at this point. Despite her victory overnight, we're very much back to square one on Brexit once again as the clock basically just rewinded to Monday.
As for risk, I'm still unable to pin down what's the cause of the fall in equities sentiment over the past half-hour but if it amounts to something more ahead of US trading, expect the aussie, kiwi and yen pairs to take a hit in trading later on.
What are your views on the market right now? Share your thoughts/ideas with the rest of the ForexLive community here.