Trade ideas thread – European session 15 July 2021

Daily thread to exchange ideas and to share your thoughts

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.

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