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. The dollar is continuing to stay weaker on the new day after the Fed overnight as markets continue to digest the post-FOMC feels ahead of the weekend.
On the one hand, I would argue that the dollar is still the best of a bad bunch and a pause by the Fed only reaffirms its position as other central banks and economies continue to reach their limits in a rather precarious time for the global economy.
I'm surprised markets aren't catching wind of the earlier Chinese data as it is yet another sign that we're just counting down - albeit slowly - to the next protracted global slowdown.
Despite the dollar having reason to stay afloat, I'm also thinking that the threshold for another rate cut may not be as high as many would think. As such, the supposed pause may not mean much if markets can still bully the Fed into another decision.
That and the fact that near-term technical levels among key dollar pairs are siding against the greenback suggests that the weakness should be maintained for now.
That is until dollar bulls find some steady footing or lose more ground amid a break of key technical levels on bigger timeframe charts, as markets continue to digest the aftermath of the FOMC meeting ahead of non-farm payrolls tomorrow.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.