Happy Friday, everyone! It seems like every time there is talk of a dollar demise this year, the currency always manages to hold its ground and this week is one of those cases. But is the run up to quarter-end also part of the story here?
Well, I'm inclined to think it is at least for equities - at least some part - and bonds. The selling in stocks is continuing today and it was only tech shares that managed to gather any reprieve yesterday. That speaks to how negative the mood has been throughout the week.
Meanwhile, the yen continues its capitulation and the question now isn't so much so about the levels (well maybe still for USD/JPY) but whether or not Japan officials will look to intervene. There was already a taste of it last year so it's not to say that this is going to be that big of a deal if it were to happen again.
I'm also watching out for gold as the drop continues towards $1,900. I've been harping on it all week but I am also one that is looking for a long position based on the structural view in the yellow metal. As mentioned before, a pullback closer to the 200-day moving average at around $1,852 currently would be most attractive.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
