The dollar is mixed after some softness overnight following weaker US data

WCRS 04-09

The aussie is the lead currency as we begin European trading after Q2 GDP came in-line with estimates, averting fears of a more profound weakness in the Australian economy.

That said, the details are still concerning with the annual growth estimate slumping to its weakest level since Q3 2009 with consumption activity still somewhat tepid. All of this continues to point towards a rate cut in Q4 so that may help to limit gains in the currency.

Meanwhile, the pound is sitting a little higher after rebel/opposition lawmakers successfully defeated the government to seize control of parliamentary proceedings. Cable holds around the 1.2100 handle currently after recovering from overnight lows of 1.1959.

The dollar is sitting more mixed after some weakness in US trading yesterday but narrow ranges are still observed for the most part so far.

The yen is a little weaker amid more optimistic tone in equities with Treasury yields also a tad higher in the early European morning.

Looking ahead, expect Brexit headlines to dominate proceedings once again but I reckon we'll see less rumour-mongering than yesterday if anything else. Other than that, keep an eye on the risk mood as that will stay a key focus affecting trading sentiment at the moment.