Major currencies are still holding narrow ranges on the day
It was a mixed session yesterday that in the bigger picture saw the pound and euro weaken against the dollar, with the former falling off rather heavily on the back of ongoing political and Brexit concerns.
Markets are in a calmer mood to start the day, as major currencies are still keeping tight ranges for the most part. The loonie is a little higher but isn't exactly running away and I reckon there won't be much reason to with Canada CPI data still to come later today.
Meanwhile, the focus in the currencies space in European trading will no doubt be on the pound again to see if there is any follow through or retracement to yesterday's move. The dollar is a tad softer but really it isn't anything too noticeable.
EUR/USD holds a 10 pips range between 1.1207 and 1.1217 while most major currencies are less than 0.1% changed against the greenback. That pretty much highlights the tepid trading we're experiencing so far to start the session.
Equities and bonds aren't helping much either as Asian equities are lower, following the footsteps of Wall St overnight. US futures are flat and Treasury yields are also little changed, offering little direction for traders as we begin the European morning.
The major focus in markets will remain on the Fed but with little on the economic calendar and Fedspeak today, we could be in for a more choppier session ahead.
