Trade ideas thread - European session 14 July 2021

Author: Justin Low | Category: News

Daily thread to exchange ideas and to share your thoughts

The kiwi is leading gains in the major currencies space after the more hawkish RBNZ tilt earlier today, as the central bank put a halt to QE purchases and setting for a potential rate hike going into the August meeting.

A couple of key kiwi levels to watch in NZD/USD and AUD/NZD in the aftermath.

Looking ahead, the loonie will also be a main focus as the BOC policy decision is due later in North American trading. USD/CAD is holding little changed close to 1.2500.

Treasury yields are still keeping a decent rebound off last week's lows, with 10-year yields up to 1.40% and that is helping the USD/JPY rebound this week.

Fed chair Powell will also be on the agenda later today but I don't think he will reveal any major shifts in the narrative for now, so bond yields may not see much of a strong reaction as yesterday later.

That said, the technical bounce near the 200-day moving average for 10-year yields is encouraging and that could extend further after witnessing the short squeeze play out in the past two weeks or so.

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

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