The pound is holding firm after European leaders granted a six-month 'flextension' to the UK on Brexit
But overall changes remain rather modest with cable sitting near the 1.3100 handle. The euro is also trading steadily following a dip and rebound in overnight trading after dovish comments by ECB president Mario Draghi in his press conference.
Meanwhile, the dollar is trading mixed against the rest of the major bloc but trading ranges remain relatively narrow for the time being.
The aussie is a tad lower after federal elections is called for 18 May, presenting some political risk in the near-term for the currency. And the loonie is the laggard as oil prices are slightly on the back foot to start the day. WTI is down b 0.5% to $64.30 currently.
Overall risk sentiment is still subdued as US equity futures and bond yields are rather flat to begin the day. Markets remain cautiously optimistic but I'd be wary of any move in USD/JPY that heads towards the 110.00 level. That could be a precursor for market sentiment to head south in the coming sessions.
