Daily thread to exchange ideas and to share your thoughts

WCRS 13-02

Good day, everyone! Hope you're all doing well as we get things going in the European session. It's been a decent start to the day so far with the kiwi being the notable mover as it jumped on short covering after the RBNZ was less dovish than anticipated earlier.

The aussie benefited slightly from the move and was also dragged higher on the back of more optimistic risk tones in markets, which is also helping the loonie as oil prices stay underpinned.

The dollar remains rather mixed after surrendering gains seen on Monday in overnight trading while the yen is the weakest performer once again as risk sentiment stays buoyed on hopes that US-China trade talks will take a turn for the better.

Looking ahead, the key risk event on the day will be the US CPI report at 1330 GMT as a driver of dollar sentiment. But until then, expect the greenback to remain choppy and overall risk tones to remain before US traders cast their votes later today.

As for trades, cable looks to be rejected at the 100-hour MA again and fading the earlier kiwi spike are among opportunities that I would identify as being the more clear cut ones.

What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.