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 on the session. It's been a bit of a calmer start to the day after the Fed shook things up overnight with Powell remarking that softer inflation is 'transitory', helping the dollar to gain thereafter.
The greenback is mixed on the session so far, slightly on the softer front but nothing too notable. Major currencies are mostly still rangebound but we have seen the yen decline slightly on optimism for a trade deal with Treasury yields moving up. 10-year yields are higher by 2.5 bps to 2.525% and that is helping to keep yen pairs slightly underpinned.
Powell's remarks may have given the dollar a temporary reprieve but the Fed's stance is by no means any real reason to get overly bullish on the greenback, so market participants are left grasping at straws again in search for fresh direction. Perhaps the US non-farm payrolls report tomorrow could provide the next catalyst. In the mean time, we may have to settle for a bit of a sluggish next couple of sessions.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
