Dollar a tad softer ahead of European markets open
Commodity currencies lead amid calmer risk mood for now
The greenback is holding a little weaker on the day but there hasn't been any major moves like the ones we have observed earlier in the week to start the session today.
Commodity currencies are holding decent gains amid calmer risk sentiment following the PBOC fixing the yuan not as weak as estimated and better Chinese exports data earlier.
Oil is also posting a solid rebound today and that is helping to push the loonie up among the notable movers as we begin the European morning.
Overall, trading ranges remain much narrower than what we have been spoiled with over the last week or so. EUR/USD sits in a 17 pips range thus far, still pivoting around the 1.1200 handle while USD/JPY holds a tad weaker at 106.17 as Treasury yields are still sluggish after yesterday's back and forth action.
I reckon we'll see markets remain in a state of flux unless there is a fresh catalyst to drive price/risk direction from hereon. It's all about adjusting to the new norm of global central banks stepping up easing policies and currencies being offered up as a weapon to battle back against the global economic backdrop (weaker growth and slowing inflation).