Trade ideas thread – European session 31 March 2021

Daily thread to exchange ideas and to share your thoughts

Treasury yields are pushing higher once again to start the day and that is keeping the yen pressured – not to mention the Japanese fiscal year-end adding to the mix.

There’s also month-end and quarter-end flows to contend with today, so that may offer more noise than actual signals to the market as we look towards April.

In any case, watch out for the technicals as that is still the best gauge one can work with in times like these. The dollar is still looking sharp in that sense, with EUR/USD tracking towards 1.1700 and USD/JPY aiming towards 111.00 ahead of European trading.

The dollar index itself has broken above its 200-day moving average with the bulls setting their sights on the November highs near 94.00 next.

Elsewhere, precious metals are still under the cosh with gold retesting the lows for the month near $1,676 while silver is extending a break below its 200-day moving average under $24 currently. Investor appetite continues to be the key driver here.

US equities kept more tepid yesterday with futures also pointing to similar sentiment for the time being. For today, fixing/rebalancing flows may be one to watch but as long as yields stay elevated, the bias towards favouring a rotation play remains.

What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.

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