Daily thread to exchange ideas and to share your thoughts
Happy Monday, everyone! Hope that you're all enjoying a good start to December as markets are definitely in a cheery mood following the trade ceasefire reached between US and China over the weekend in Buenos Aires.
- Commodity currencies lead as risk on sentiment prevails
- Loonie also benefits as oil prices surge ahead of OPEC+ meeting on Thursday
- Equities remain in a more positive mood; E-minis pushing towards 2% gains
- Haven currencies lag as bond yields rise in tandem
- Dollar on the back foot as risk remains buoyant
While all this positivity is rather infectious to start off the week, the big question is how long can this last? Mnuchin has already stepped up his offence on China, asking them to pledge to firm commitments but it doesn't appear China is quite ready to do so yet.
The relief rally here is looking to be a decent one for risk assets but for it to last the course for a major year-end rally? I'm still a little skeptical on that. There's no point in standing in front of the moving train now and it's been a great opportunity to catch the ride, but I'm going to still be staring out the windows keeping one eye on the tracks in case the wheels start to get a bit shaky.
What are your views on the market right now? Share your thoughts/ideas with the rest of the ForexLive community here.
