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 on the session. It's been a decent start to the trading day with some action across the board to start the morning. The yen is holding weaker amid more optimistic risk tones ahead of the Trump-Xi meeting although USD/JPY is hovering around 108.00 now as China didn't provide any confirmation about an earlier report on a trade truce.
Meanwhile, the pound bounced around from a low of 1.2670 to hit yesterday's high of 1.2707 against the dollar as GBP/JPY threatened a breakout after hitting a two-week high of 137.34 in the past hour before retreating slightly.
That said, for cable, price action remains more indecisive as near-term bias remains more neutral with price still sitting in between key hourly moving averages.
Looking ahead, expect market sentiment to continue to focus on US-China trade talks before the Trump-Xi meeting over the weekend so trade headlines will be the main thing to look out for over the next two days.
Quite frankly, the way I see this all playing out is still US and China agreeing to resume talks again (helping risk assets find relief in the short-term) before it all comes crashing down again like what we saw last month. Either way, the ongoing standoff won't do global trade and the global economy any good so expect those issues to still weigh on markets as we move towards the start of 2H 2019.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
