Daily thread to exchange ideas and to share your thoughts
Happy Friday, everyone! The dollar looks to be holding in good stead once again ahead of European trading with the market continuing to digest the post-FOMC reaction.
While Treasury yields retraced some of the moves on Wednesday, the dollar continues to look to run rampant after breaking out from rangebound trading in the past 4-5 weeks.
As such, it is tough to really handicap the dollar momentum as we are seeing some key levels being tested and taken out. The technical implications are big and it is likely we will see more follow through considering how short the market is on the dollar.
Of note, the likes of the pound and loonie may be punished more in the short-term.
Elsewhere, gold is also took a plunge yesterday again though it is bouncing a little today. However, the drop below $1,800 and both key daily moving averages still suggest that sellers are well in control at this point in time.
I'd keep an eye on yields in case as the bond market is usually the tell in the market for the bigger picture but I wouldn't be one to stand in the way of the dollar for now.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
