The greenback is lower across the board as broader market sentiment is seen improving after yesterday's events. The pound is up over 1% against the dollar today and that sounds good until you realise that it only sees cable trading to just above 1.0800 at the moment.
This comes after the drop yesterday, with the low being a record bottom for the pound just below 1.0400 at the time. The BOE didn't offer much but as the dollar is correcting across the board, we may see a bit of consolidation for cable between 1.0600 to 1.1000 perhaps for the time being.
Elsewhere, EUR/USD is up 0.6% to 0.9665 as the pair works to erase yesterday's decline. USD/JPY is down 0.4% to 144.23 but buyers are still keeping in a good spot to try and test 145.00 again in the big picture.
The overall risk mood is also looking good as stocks and bonds are also both higher ahead of European trading. S&P 500 futures are now up 1.1% on the day and working to erase the drop from yesterday. Meanwhile, 10-year Treasury yields are down 3.5 bps to 3.845% after having neared the 4% mark yesterday.
All in all, markets are looking calmer but this bit-part move/correction isn't going to convince of a major turnaround in the trend as the ongoing fundamental backdrop from recent weeks continues to hold.
