The franc and yen hold slight gains as markets stay cautious
There's a hint of risk-off sentiment in Asian trading with equities marked lower and Treasury yields also a bit weaker, alongside commodities as well. As a result, the swissie and yen are posting slight gains as lingering tensions from the dispute between US and China continue to weigh on markets in general this week.
The aussie is trading a little lower as a result of the softer risk tones but overall, the ranges among major currencies today are still rather small. AUD/USD sits close to 0.6870 now but is stuck within a 16 pips range so far on the day.
The laggard though is the pound as the mess seen in the UK political landscape continues to sour sentiment surrounding the currency. Andrea Leadsom's resignation yesterday certainly didn't help with the already dour mood and May continuing to hang on in the battle with no chance to win the war makes it tough to see any upside at the moment.
Looking ahead, the euro may come into focus as we'll have euro area flash PMI readings for May in the next few hours but expect risk sentiment and Brexit headlines to continue dominating the market landscape as we navigate through the trading day.
