Daily thread to exchange ideas and to share your thoughts

Happy Friday, everyone! Hope you're all doing fine as we get things going here in the session. It's been quite a decent start to the session with notable movement across commodity currencies as risk sentiment is dealt a blow following weak Chinese data in Asian trading.

  • JPY leads as equities sentiment remains sour, lower Treasury yields
  • AUD, NZD lag as risk-off sentiment prevails, weak Chinese data weighs
  • E-minis currently down 0.7%
  • European equities lower at the open; DAX down 1.0%

Considering how the euro held up despite Draghi's dovishness yesterday, it sure looks like EUR/USD will hold the range between 1.1300 to 1.1400 ahead of the FOMC meeting next week. I would expect tepid trading in the single currency up until then even as we navigate through key economic data in the meantime - such as the US November retail sales data later today.

Brexit rhetoric is also appearing to hit the pause button as European and UK politicians are set to head out for their Christmas break. The pound shouldn't gain as lingering worries still remain on whether or not May can seek the necessary concessions but it shouldn't sink as well, since there's still hope that she may get them.

Risk will take center stage in trading today - not like it already isn't - so look out for how US equities perform later in the day as that will set out further clues on any significant follow through from the moves we're seeing so far.

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