Dollar on the back foot ahead of European markets open
Continued dovish Fed comments overnight weigh on the greenback
Meanwhile, commodity currencies are leading the charge notably with the kiwi and aussie rising alongside a push higher in the Chinese yuan to start the day. US-China trade talks look set to advance to the next stage with Chinese vice premier Liu He looks set to meet with US representatives at the end of this month, and that's helping to calm nerves at the very least in the risk space.
Other major currencies remain trapped in narrow ranges as markets will look towards the US December CPI release later today for more clues on further direction.
EUR/USD sits a little higher but holds in a 34 pips range to start the day but a more accurate gauge of the lack of market movement is seen in yen pairs. GBP/JPY sits in a measly 24 pips so far today which goes to show the sort of day the rest of the major currencies bloc is experiencing so far.
Risk tones are also rather flat with US equity futures sitting a tad lower by around 0.1% currently. As mentioned above, all eyes will turn towards the US December CPI release so until then, expect markets to adopt a more calm and collected approach to the trading session.