Daily thread to exchange ideas and to share your thoughts
Of chaos and interruptions. That's probably the best to describe the first US presidential debate earlier, which pretty much gave investors very little at the end of it all.
If anything else, it just tells us that this lame battle will continue all the way through to the polls in November and the uncertainty that comes with it will linger as such.
On one hand, the debate is pretty much fitting with the 2020 theme so far.
Back to markets, US futures slumped in the aftermath as the debate failed to lift any of the clouds of uncertainty. That is putting a slight bid in the dollar and yen as we start to move towards European morning trade.
I would argue for more caution in trading today as flows may be muddied by month-end and quarter-end moves, especially going into the London fix later.
Looking further ahead, we may not get much clarity on things until Friday where Brexit negotiations come to an end and also the release of the US jobs report.
Over to the charts, AUD/USD is backing off after a test of its 200-hour moving average just above 0.7140 and as the dollar firms a little on the day.
The pound is continuing a bit of a struggle to get above 1.2900 with GBP/JPY also being capped by its 100-day moving average near 135.90 for a third day now.
Elsewhere, gold is also seeing gains this week limited by its own 200-hour moving average just under $1,900 but price action is keeping a more neutral near-term bias still.
In short, there's still plenty to play for despite the dollar seeing a bit of a setback to its good momentum from last week. Equities have also done well to recover on Monday but there are cautious signs developing, which is keeping market participants on edge.
But as mentioned above, perhaps we may only get more clarity on the overall market mood as we get closer towards the weekend.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
