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The dollar is finding some mild reprieve after a rough couple of days, with US futures dribbling lower as we look to begin European morning trade.

WCRS 21-05

The risk mood is slightly on the defensive as such, with 10-year Treasury yields also down by 2 bps to 0.66% as we kick start the session.

Amid the softer touch in risk, the aussie and kiwi are lagging with the former still troubled by ongoing Australia-China tensions. Meanwhile, the pound continues to nudge lower as more chatter about BOE negative rates and Brexit risks weigh on the currency.

It is still all about risk and it'll be interesting to see how the market will view the latest round of PMI figures. As mentioned here, there will be more than meets the eye with the headline figures so let's see how the market will digest that in the session ahead.

As things stand, risk sentiment remains the key driver in the market as we see some pullback in US futures with the S&P 500 having approached a test of its key daily moving averages.

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