Daily thread to exchange ideas and to share your thoughts
It's been a quiet start to the new week with some mixed tones in the market as equities kept firmer while Treasury yields retreated back below 1.50%.
The latter saw the yen being the top performer yesterday with the dollar just behind it, though I still hold skepticism on the former's resilience in the bigger picture as yields are likely to rise and also due to rate differentials slowly coming back into play.
The key hourly moving averages are what is keeping a lid on price action in EUR/USD and GBP/USD to start the week, so watch out for that still in the session ahead.
Major currencies are keeping in narrower ranges for now with little on the agenda once again to really shake things up. Month-end and quarter-end rebalancing flows may add some trickiness in interpreting price action in the days ahead.
Also, keep in mind that we're approaching the summer lull period so there might be days with little to no trending action in the market especially when everyone's hyped up on the Euros (what a day of football yesterday was!).
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
