Daily thread to exchange ideas and to share your thoughts
The dollar is lightly softer so far, though the aussie is the laggard as risk sentiment is keeping more tepid for the time being. US futures are little changed following the slight retreat to start the week with eyes on US CPI data and the FOMC minutes later today.
Yen pairs are ones that I've been watching closely and they still look primed for a further upside extension, although we are seeing a bit of a breather so far on the day.
USD/JPY still looks poised to potentially test key resistance at 114.00 with CAD/JPY already contesting the highs for the year @ 91.17-19. For the latter, the 2017-18 highs at 91.58-64 will also offer more immediate resistance but a break above that leaves plenty of upside room for buyers to explore especially as oil prices remain underpinned.
WTI crude is keeping a push above $80 for now and that is a positive sign so look towards that to perhaps provide more support for the loonie in the days/weeks ahead.
The bond market still holds the keys for yen pairs so be wary of the inflation debate alongside key economic/risk developments, as well as Fed expectations.
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