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The dollar is losing some light ground going into European trading, as the lift from the US CPI data release yesterday was brief and the FOMC minutes mainly just reaffirmed market expectations of the taper plan going into year-end.
The fact that the former didn't really inspire the greenback and yields does say something to the price action we're seeing in recent sessions so that is something to take note of as we look towards the latter stages of the week.
Equities look to be in good stead to recover a little but I would still argue that yields are likely to trend higher or at least keep elevated, even if we are seeing a bit of a breather lately and possibly over the next few sessions.
Yen pairs are still the ones I'd be looking at for any major shifts in sentiment in the FX space and there isn't much outside of that besides some continuation of a downside move in USD/CAD as it contests the July low at the moment.
Besides that, oil keeping perky and pushing higher is also something to keep an eye out for as we get into the winter in Europe and gas prices are starting to show signs of life again after a bit of a cooling off period.
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