It's risk on as we approach European trading
Commodity currencies lead the charge as the trade truce between US and China has made for positive vibes to begin the week. Though some of those gains have been tempered with due to the varying statements from the two countries, it hasn't been enough to sap out all the optimism in markets just yet. I would expect similar tones to play out until we get into US trading or until something new develops.
The loonie is among the leaders as oil prices are surging at the start of the new week. Oil is up by more than 5% and that is keeping USD/CAD near the lows around 1.3200 as European traders join the fray.
The euro is also joining in on the fun a little as Italy is reportedly looking to cut its budget deficit to 1.9% to 2.0%. That will allow the European Commission a chance to possibly accept the latest proposal and put a pause to recent tensions and worries for the time being.
Meanwhile, the dollar, yen, and swissie are on the back foot as a result of the more upbeat risk tones across asset classes.
