Weaker risk sentiment is helping to lift the yen ahead of European trading
Asian stocks are a little lower with Chinese equities now down about 0.2% in the closing stages, following a similar sentiment seen in US equity futures which are down by 0.3%. The softer touch in risk looks to carry over to Europe in the early morning and that is keeping the yen underpinned while risk currencies are lagging behind.
The kiwi is on the back foot as a result as it trades near the lows for the day with NZD/USD now at 0.6750. It's mostly a case of weaker risk sentiment that is dragging down the kiwi today but be on the look out for a potential turnaround in risk during US trading with earnings releases set to come about. The notable earnings released today will be Netflix and Morgan Stanley.
Meanwhile, the dollar is also holding steady on the day as it lags only behind the yen to begin the session. European currencies are yet to come alive with the pound seen trading sideways still failing to get above 1.2900 or move below 1.2850 for the time being.
Expect more Brexit headlines to hit the wires in the session ahead but otherwise be wary of changes in risk sentiment as the economic calendar offers little of note to influence proceedings in the European morning.
