Daily thread to exchange ideas and to share your thoughts
Good day, everyone! Hope you're all doing well as we get things going here in the session ahead. It's been a decent start to proceedings with the pound continuing to hit a rough patch after the election amid the return of Brexit jitters.
Meanwhile, the dollar is keeping a little more firm to start the day though movement among major currencies are still rather narrow for the most part.
The overall risk mood is more balanced with US futures seen little changed alongside bond yields to start the European morning. That is giving traders little poise to go chasing any firm directional moves with the holiday season also approaching soon.
Barring any major headline surprises over the next few days, I would expect trading sentiment to focus more on the technicals and flows - but as a word of caution during this time of the year, liquidity conditions are not the best reflection of real money flows.
The evening star pattern for cable has been an ominous signal and a trip back below the 1.3080-00 will be a real blow to buyers in search of dips. Meanwhile, the aussie is continuing to gradually track lower after the key technical rejection just above 0.6900.
Those are the two key currencies (pound and aussie) that are "in play" in my view as the others look to be more choppy as we mark the mid-point of the week.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
