Daily thread to exchange ideas and to share your thoughts
Things are keeping a fair bit quieter as we count down to the FOMC meeting later today, being the key item on the agenda in trading this week.
That will arguably set the tone for what is to come next in markets but as much as the Fed may want to shake up the recent narrative, I reckon we'll see a continuation of things in the past week or so - especially in bonds.
The flattening of the yield curve may put added pressure on yen pairs to the downside after their recent surge higher, so just be wary of that if anything else. It could be a good point for profit-taking before focusing back on longs once global conditions stabilise.
Equities are more tepid after the gains in Wall Street yesterday but this has been a familiar tale in trading this year i.e. stocks looking softer in Asia to Europe before rallying in US. But the Fed will have the final say today so let's see how that plays out.
Elsewhere, I still hold a conviction for higher oil prices but I'm not keen on recent price action as we see a back and forth move over the past two weeks. I'd be more comfortable adding to longs on a deeper pullback towards $80 and below that, if it does come.
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