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Fed taper? No problemo. Equities continue to shine as the market is feeding off calmer tones surrounding Evergrande as we carry on through the week.
US futures are up 0.3% and that is keeping the overall mood steadier ahead of Europe.
The dollar is little changed for the most part, only trading a touch lower against the euro, pound and loonie so far on the day.
EUR/USD has large option expiries at 1.1700 today so that is likely to keep price action more contained while USD/CAD is playing around its key hourly moving averages at 1.2718 and 1.2773 so that leaves some room to roam around.
As for the pound, a lot will ride on the BOE decision later in the day.
But for now, even with Treasury yields less excitable, the dollar is keeping in good standing post-Fed and I'd argue that it is likely to keep up until the end of the week. However, as equities are still roaring, be wary of a risk-on extension across other markets too.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
