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The dollar and yen are leading gains to start the day, as there was a bit of a nervous return from the weekend amid the collapse of the Turkish lira at the open.

WCRS 22-03

That said, the gains in the greenback have been trimmed with the lira paring back some losses in volatile trading still in the past hour or so. USD/TRY fell from 8.05 to 7.70 but has now jumped back up to 7.90 as European traders enter the fray.

That might keep some degree of risk aversion in place but so far, movement is rather limited in the major currencies space for the most part.

Elsewhere, the market will still keep some focus on Treasuries after the events last week.

The Fed decided to not extend the SLR exemption on Friday and that helped yields to push higher. Tech stocks kept the calm though amid quadruple witching day but lower yields today (helped in part by haven bids) are helping the mood once again.

Nasdaq futures are up 0.6% as 10-year Treasury yields are down 4.6 bps to 1.675%.

It was this similar Monday a year ago that the Fed pulled out all the stops and set the path for the market to rally all the way to this year.

As much as higher yields may threaten that a little, it is but a reminder of where we are as all of that policy accommodation is still very much.

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