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. Most major currencies are still seen near flat levels against the dollar but the yen and kiwi are the notable laggards on the day so far.
The former is seen weaker after Japan's trade balance surprised with a larger-than-expected deficit as exports fell heavily last month. Meanwhile, the latter is weaker on the back of cross selling and is seen reversing gains against the dollar today.
Risk sentiment is still a little bit tepid but investors are still holding up hope that US-China trade talks this week will lead to further progress in the coming days.
From a fundamental perspective, opportunities to short the euro and pound against the dollar look attractive in my view but the near-term technical biases aren't supportive of that. Considering that we still have the FOMC meeting minutes to come, I'd wait on that before reevaluating those potential trades.
Though, with trade talks looming there could be better opportunities in the wake in trading the two currencies there against the likes of the yen (if talks go sour) or kiwi/aussie (if talks turn good).
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
