Daily thread to exchange ideas and to share your thoughts
Happy Monday, everyone! Hope you all had a great weekend and that you're ready to tackle the new week. It's been a quiet but straightforward start to the day so far with the dollar notably weaker across the board as markets continue to focus on the dovish remarks by Fed chair Powell on Friday.
Although the yen and swissie are leading gains, changes among the rest of the major bloc are somewhat limited - movements so far among cross currencies have been ~0.1% or less for the most part.
The major focus right now in markets is the dollar weakness and the buoyant mood in equities/risk. There's basically a trio of factors boosting sentiment right now as US-China trade talks continue to be taken with optimism, Fed chair Powell taking a more dovish tone, and China deciding to introduce more stimulus (cutting RRR) to boost its economy.
Though markets are focused on these themes, it's more of a sense of how long can this rhetoric last? I reckon all it takes is a gentle nudge/tweet for a reminder there are still plenty of things to worry about in the global economy and that will inject more volatility into the price action we're seeing so far today.
What are your views on the market as we begin the new week? Share your thoughts/ideas with the rest of the ForexLive community here.