Daily thread to exchange ideas and to share your thoughts
It's all about counting down to the US non-farm payrolls release later in the day but we are getting to some interesting points in FX in the run up to that at least.
The dollar is still keeping in good stead with EUR/USD lingering at its lowest levels since July last year around 1.1540-50, as sellers seek validation for a break below the 200-week moving average @ 1.1571.
USD/JPY is also looking perky as 10-year yields approach 1.60%, with the pair on the verge of another test of the key 112.00 level currently.
Other yen pairs are also offering up some interesting opportunities with CAD/JPY breaking out to its highest in three months above 89.00 while GBP/JPY is contesting its 100-day moving average @ 152.38, which has capped gains since last month.
AUD/JPY is also testing its own 100-day moving average @ 81.79 with the September high @ 82.03 one to watch in case we do see yields surge higher and the yen tumble further in the aftermath of the US jobs report later.
Besides that, the resilience in oil yesterday exemplifies the conviction that buyers have right now as price is up another 1.5% today to $79.45. A pivotal test of $80 may be on the cards and if buyers can keep up the momentum, that would bode well for the loonie too.
USD/CAD fell to fresh lows in a month yesterday and is looking towards potentially testing its 200-day moving average @ 1.2510 next.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
