Trade ideas thread – European session 6 July 2023 | Forexlive

The dollar and yen are holding in good spots since trading yesterday, with the latter pushing gains in the new day with USD/JPY even falling to 143.75 at the moment. The drop back below 144.00 is giving sellers some added room to work with, as buyers are feeling exhausted amid profit-taking near 145.00 and fear of intervention by Japan.

The more dour risk mood is also not helping the other major currencies this week, as equities are struggling since the return of Wall Street yesterday. US futures are down another 0.4% today and that sets up for a softer one in Europe later on.

After the sharp gains in the past few weeks, EUR/JPY and GBP/JPY in particular may be set for a sharp retracement – if the action in USD/JPY is anything to go by.

Besides that, the focus will start to shift towards the US jobs report tomorrow and how that will factor into the outlook for the Fed this month.

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