Daily thread to exchange ideas and to share your thoughts
Good day, everyone! Hope you're all doing well as we get things going here on the session. It's been a lively start to the day with markets running all over the place once again. The notable theme so far on the session has been that of dollar weakness with the greenback running weaker in the past hour amid more focus on Fed rate cuts since last week.
Treasury yields are in a much calmer mood, recovering some ground with 2-year yields up nearly 5 bps to 1.877% currently. US equity futures are also near flat levels as markets continue to digest global trade tensions and the Fed interest rate outlook.
As such, those two areas will remain the key focus in the day ahead with the dollar's standing called into question once again. In my view, overall risk sentiment remains rather weak still and the bond surge over the past two days isn't quite over just yet despite markets taking a bit of a breather now.
But I'd also try and avoid dollar pairs in general for the time being with the greenback looking shaky and its position in the major currencies hierarchy looking out of place. That said, I'm still keeping focus on gold and also on yen pairs in general as good bets to outperform.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.