Daily thread to exchange ideas and to share your thoughts
Good day, everyone! Hope you're all doing well as we get things going in the European morning session. It's been a bit of a quiet one but we are seeing some extension in the ranges for major currencies with the aussie and kiwi being notable movers.
The former continues to be pressured to the downside as domestic bond yields slip amid markets pricing in further odds of a rate cut by the RBA ahead of its February meeting. The odds of a 25 bps rate cut are now at ~54%, up from ~38% in late December.
Other than that, US-Iran tensions continue to stir the pot but traders and investors are now less fearful as greed is beginning to take over. Oil prices have eased lower while stocks are looking for a more steady day of trading as worries begin to abate.
Looking ahead, we'll have Eurozone CPI data on the agenda but it will still largely be about the ebb and flow as we get settled on the week.
Among the notable mentions are the aussie continues to look vulnerable near the 200-day moving average and gold dip-buying, should the retracement go any deeper. Also, the struggle in cable around the 100-hour moving average is also one to keep an eye out for.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
