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 in the European session. It’s been a rather quiet start so far with the only notable moves being in risk/commodity currencies. The dollar remains a little weaker against the rest of the major bloc but ranges on the day have been a little narrow as we kick start the morning.
I reckon the greenback will remain slightly offered ahead of the US December CPI release later today and that will also be a key risk event for risk sentiment as well. Further confirmation in economic data that the Fed should hold off on rate hikes for now will help boost equities and reaffirm the dollar weakness we’re seeing to start the year so far.
Meanwhile, the pound remains sluggish as markets continue to wait on further developments ahead of next week’s Brexit deal vote in parliament.
But for now, risk/commodity currencies are hogging the limelight with the kiwi leading the charge buoyed by a stronger yuan to start the day following another stronger PBOC fixing earlier today. With AUD/USD and NZD/USD looking for a break against key levels, traders will be eyeing US data later to confirm the earlier moves today.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.