While the Japanese yen is far and out the leader for a second straight day
The yen is mainly benefiting from a potential further escalation in trade tensions as Trump wants to push forward with tariffs on US auto imports, as well as further doubts being cast on the US-North Korea summit that is scheduled to take place on 12 June.
While the swissie has also gained on the back of that, the dollar isn't following suit as it did in yesterday's trading. The dollar was a bit tepid following the FOMC minutes as the Fed signaled that they are comfortable to let inflation overshoot by a bit more before rushing to raise rates at a quicker pace to counteract it.
There is also the move by the CBRT yesterday to raise rates by 3% has helped to stem the bleeding in the lira for the time being, and that's also helping to provide broader relief to emerging markets - which in turn is helping to promote some cross flows out of the dollar at least.
Apart from that, the dollar index once again runs into resistance at the 94.00 level, with yesterday's high touching 94.19. The index is closing in on key resistance at the 38.2 retracement level @ 94.30 and the region of 94.00 to the 94.30 level represents a strong resistance area for the greenback.
It's still early in the day, so let's see what the European trading session will bring.
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