Daily thread to exchange ideas and to share your thoughts
The drop in yen pairs is the thing that stands out the most so far today but in the bigger picture, I'd argue that this could play out as a decent retracement to buy back into - especially for the likes of CAD/JPY and NZD/JPY.
But given how things are playing out for now, I don't see much reason to rush into those trades and there is time to reassess and reevaluate the whole situation.
The bond market is still trying to figure itself out with yields sliding once again, with 10-year Treasury yields falling back to its 200-day moving average:
With key technical levels in play, it will make for an interesting trading week surely.
Besides that, I still see any major euro rallies as one to sell into although the upside is considerably shallow for the time being.
Outside of FX, gold is starting to get interesting and the alignment between the technicals and seasonal tailwind will be one to watch going into December. Oil is also keeping steadier but buyers are not really convincing of achieving the next leg higher just yet.
I still favour oil longs in the big picture but can't help to feel that there is scope for some added retracement in the short-term.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
