Daily thread to exchange ideas and to share your thoughts
The dollar is leading gains on the day but it has been a rather pushy and pully start to the week in general, with equities also somewhat reflecting that sentiment.
If anything else, I reckon we might not get a clear answer in terms of dollar sentiment and any validation for the bond market until we get to the US non-farm payrolls release on Friday (but the ADP report is one to watch out for today).
I reckon there are more straightforward plays when focusing on the energy crisis as oil continues to look poised for an extended push towards $80 and quite frankly I still see it going much higher as long as the status quo is maintained.
In that lieu, CAD/JPY is an interesting one to watch as the pair comes back into favour among buyers with a push to its highest since July and holding a break above its 100-day moving average, last seen @ 88.70 on the day.
If yields stay supportive amid firmer US data this week and the energy crisis in Europe blows up further, there is the propensity for the pair to build towards the year's highs close to 91.00 again at the very least.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
