Dollar continues to hold mixed but a little weaker in general
The aussie and kiwi are holding a little higher with the yen being lower as cautious optimism builds ahead of a US-China trade deal in the coming weeks. Chinese officials will be headed to Washington next week in hopes of securing an agreement that will pave the way for a deal to be signed after.
US Treasury yields are also holding higher on the day, with 10-year yields up by 3.2 bps to 2.532%, and that is helping to keep yen pairs underpinned on the session so far.
The pound was a notable gainer early on but erased those gains with the BOE meeting in focus over the next two hours. Meanwhile, the euro is holding slightly higher after some slight positives can be taken from the earlier PMI data but nothing too encouraging that points to an imminent economic rebound.
All in all, markets are still in search for a theme to latch on to after the FOMC meeting yesterday. Powell's message of inflation weakness being 'transitory' may have helped the dollar gain overnight but the Fed's patient stance is not something that will help the greenback extend higher in the immediate outlook.
I reckon we could continue trading in this lackadaisical manner until we get to the non-farm payrolls data tomorrow. Here's the current trading range of dollar pairs today:
- EUR/USD: 28 pips
- USD/JPY: 32 pips
- GBP/USD: 41 pips
- USD/CHF: 24 pips
- USD/CAD: 18 pips
- AUD/USD: 18 pips
- NZD/USD: 21 pips
