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 on the session. It's been a lively start to the day with risk aversion being the dominant theme in markets. The yen is benefiting as a result of that as equities continue to slide on the back of fresh concerns about global economic growth.
The franc is also gaining some traction on the more negative risk tones but the rest of the major currencies bloc remains rather tepid as we gear towards US non-farm payrolls data to come later today.
The aussie is holding slightly weaker, continuing its downtrend since Wednesday. AUD/USD nears the 0.7000 handle but large expiries at the figure level is expected to help keep downside limited for the time being ahead of US data later.
With a host of major central banks now shifting to a more dovish stance, is it time to think about possible monetary policy divergence again? Although markets are not pricing in any Fed rate hikes yet this year, the central bank may still be on course to hike rates in 2H 2019 should global economic conditions hold up. And that could be a rather unlikely tailwind for the dollar this year.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.