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The dollar is continuing to keep weaker across the board, finding little reprieve to start the new week. EUR/USD is above 1.1800 and back above its 100-hour moving average, similarly for cable as the pair looks to move towards 1.3100 currently.
The outperformance in gold is one of the key headlines overnight, with Treasury yields continuing to nudge lower adding to tailwinds for the precious metal.
When looking at gold, one can argue that its inverse correlation with real yields is possibly the most important factor over the years:
And if so, it likely only means that only the Fed will be able to tame the beast in the bigger picture. At its meeting last month, the Fed gave the green light for lower yields and that is just adding to reasons to stay bullish on gold in the long-term.
US stimulus talks will remain a key spot to watch this week, but also the shift in focus towards the non-farm payrolls report on Friday.
Trump touted a 'big number' on that so we'll see how things unfold.
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