Risk currencies rise on more optimistic tones surrounding trade talks

WCRS 18-02

The greenback is joined at the bottom of the pile by the Japanese yen as both currencies are trading softer as markets remain hopeful of further progress in trade talks between US and China later this week.

Asian equities are more buoyed and that should lend a helping hand to European stocks to also post small gains at the open later. The more optimistic sentiment is helping to boost currencies like the aussie and kiwi on the day so far.

Other major currencies are mostly trading sideways to one another but the pound is holding up well after commentary over the weekend that said French president Macron was siding with legally-binding changes to the Brexit backstop; although that was later retracted and denied. Nonetheless, the pound remains more perky than it was last week, as cable shifts back above the 100-day moving average and the near-term bias is favouring buyers more currently.

Looking ahead, we may be in for a quiet day with little on the economic calendar and North American trading is set to be a bit of a bore with a US holiday today as well as provincial holidays in Canada.