Positive tone in markets is providing a boost to commodity currencies
AUD and NZD leads the way at the start of European trading, while CHF and JPY lags behind
European stocks are opening with a bang, and that follows the positive tone set by Wall Street yesterday and Asian trading today.
That's helping to feed through a little to FX markets as we see commodity currencies lead the charge - with the NZD the top gainer (NZD/USD now breaking through levels I pointed out here).
Meanwhile, the AUD isn't that far behind. AUD/USD slipped in the Asian session but found support at the 100-hour MA and buyers have not looked back since:
Other pairs have fairly limited ranges on the day, but generally the dollar has surrendered gains following the release of the Dec FOMC minutes yesterday - except against the JPY.
The Japanese yen remains the weakest currency in the major bloc as Japanese markets reopen and the Nikkei closed above 23,000 for the first time since 1992. US 10-year yields are also 1 bps higher on the day at 2.46% - which is helping to keep USD/JPY underpinned for now.
Ranges for the major pairs today:
- EUR/USD - 33 pips
- USD/JPY - 30 pips
- GBP/USD - 24 pips
- USD/CHF - 16 pips
- USD/CAD - 39 pips
- AUD/USD - 42 pips
- NZD/USD - 53 pips