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The yen is leading gains in the major currencies space as we see Treasury yields retreat from the highs earlier in the week, with 10-year yields down 2 bps to 1.334% today.
USD/JPY has slipped back below 110.00 to 109.83 currently as the push and pull continues, with overall risk sentiment also more tepid since yesterday.
US futures are mixed, with S&P 500 futures down 0.1% while Nasdaq futures are up 0.1%.
Commodity currencies are a touch lower against the dollar, with USD/CAD seen above 1.2500 as the loonie is also hit by lower oil prices after an on-par performance by the BOC yesterday – which the market was hoping for more in general.
I still favour oil longs on dips and scaling in on CAD longs against the JPY and CHF. On the latter (CAD/JPY), the recent lows closer to 87.10 offers a decent entry but a deeper pullback towards the April lows closer to 86.00 and below will be more attractive.
The same can be argued for CAD/CHF closer to the April lows @ 0.7250 with tight stops to be run below both pairs if there is a significant risk-off turn.
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