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 European trading. It's all about the dollar and yen's weakness in today's trading so far. The dollar remains on the back foot following Trump's comments overnight where he voiced out his at-odds opinion with the Fed and Powell. Meanwhile, the yen is also weaker across the board as equities and bond yields march higher on the day as investors are in a cheerful mood.
Some market themes to consider:
- Brexit negotiations to begin today between UK and EU
- US-China trade talks also set to take place this week, low expectations on this though
- Dollar weakness across the board and retracement looks like it can run further
- Yen also weaker as bond yields rise and equities trade higher
- How will Powell and the Fed react to Trump's comments? Does it matter at all?
From the charts, the dollar weakness we're observing looks to have more room to run still in my view. If you're looking for confirmation of a return to the dollar upside momentum, there's still much waiting to do on that. Right now, near-term momentum is clearly against the greenback as multiple chart formations show that the bias have shifted against the dollar. That's something you shouldn't fight against.
What are your views on the market right now? Share your thoughts/ideas with the rest of the ForexLive community here. :)
