Daily thread to exchange ideas and to share your thoughts

Good day, everyone! Hope you're all doing well as we begin the European trading session today. It's been a quiet start for the most part with major currencies still ranging narrowly but the yen is leading gains on safety flows after Pakistan is reported to have shot down to Indian aircraft at its border.

WCRS 27-02

With limited movement across other major currencies and not much direction in general, traders are left with little to work with as we begin the morning in Europe.

In terms of price levels, I'd be wary of further gains in the euro as it moves towards 1.1400 against the dollar. There's notable offers at the figure level alongside resistance around 1.1410-20 which should help to limit gains ahead of US trading. Also, take note that we have the ECB meeting to come next week so I would expect a bit of a downside skew as we approach the event next Thursday.

Other than that, expect plenty of focus to be on the pound as the Brexit motion debate and vote continues later in the day. If May wins the vote today, it would give added confidence to the recent bullish conviction on the pound. For cable, watch out for the 1.3300 handle as a break above that could reign in further gains for buyers.

What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.