The dollar is regaining a bit of footing after its post-FOMC plunge this month, and the antipodeans are being hurt the most so far today. The latter is also being impacted by a softer Chinese yuan, after the rate cuts announced earlier here. The market mood remains skittish and that will likely persist through European trading before Wall Street returns from the long weekend.
Looking at major currencies, the yen's capitulation continues with USD/JPY nudging above 142.00 today. There continues to be some verbal intervention among Japanese officials but nothing too alarming yet. In case you missed it, some quarters of the market are expecting firmer interference somewhere around 145.00 instead.
Coming up in Europe later, there won't be much on the agenda with German producer prices and Eurozone current account balance being the notable releases. That should see markets contemplate further the moves at the start of this week, which might suggest that the dollar fall (and equity gains) could be looking to turn around ahead of month-end/quarter-end.
0600 GMT - Germany May PPI figures
0600 GMT - Switzerland May trade balance data
0800 GMT - Eurozone April current account balance
0900 GMT - Eurozone April construction output
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
