Despite equities posturing more defensively, there isn't a clear hint of a theme among major currencies. The dollar is trading more mixed as it is slightly higher against the yen, loonie and aussie but a touch softer against the euro, franc and kiwi at the moment. It seems like traders are still sorting out their feet to start the new week with month-end also in focus.
USD/JPY was lower in Asia down to 129.20 but is now trading back up to around 130.00 although the predominantly downtrend is still very much intact (as seen below). Meanwhile, other dollar pairs are still respecting the technicals highlighted at the end of last week here so there isn't much else to comment on that.
It's going to be a bit messy to figure things out in the next few sessions as markets will be bracing for the central bank bonanza coming up later this week, while having to deal with month-end rebalancing flows as well.
But as always, the technicals are arguably the best tool you can use to try and define risk and gauge the market bias during times like these. Otherwise, there might not be much else to work with to start the week as all eyes will be on the Fed, BOE and ECB in the coming days.
