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Narrow ranges are still persisting for the most part in the currencies space, after a relatively decent start to the new week yesterday.
The dollar is trading more mixed after losing ground yesterday as equities surged higher amid a more positive risk tilt in the market.
Asian equities are a little more mixed, with the Nikkei trading to fresh seven-month highs but the Hang Seng is lagging today. US futures are slightly higher so that is keeping some optimism ahead of European morning trade at least.
The pound was the biggest winner yesterday but amid Brexit negotiations this week, there is still the risk that gains could unravel over the next few days.
For now though, buyers are in near-term control for cable but are encountering resistance from the 61.8 retracement level of the swing move lower from 1.3000 at 1.2880.
GBP/JPY is also being capped by its 100-day moving average at 135.89 for now.
Besides the focus on the risk mood and dollar sentiment in general, the first US presidential debate later today will be something to be mindful about.
If either Biden or Trump chokes, it could very well have significant market repercussions with US election pricing to be more evident in the coming weeks.
Also, just be wary about month-end and quarter-end flows as we look to round off September and Q3 trading over the next two days.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
