Dollar holds slightly lower so far on the session

After the strong gains yesterday, the dollar is catching a bit of a breather in trading today. This comes as US futures are also just down slightly after the surging gains in the day before. Market players are digesting the US-China trade truce and will have to wait to see if the optimism can be justified.

USD/JPY is down 0.4% to 147.85 but it doesn’t take much away from the over 300 pips jump from yesterday.

Meanwhile, EUR/USD is up 0.2% to 1.1115 and GBP/USD up 0.3% to 1.3215 on the day. USD/CHF is also marked down by 0.7% to 0.8395 but is still well higher compared to the Friday close last week near 0.8300. The antipodes are also faring better with AUD/USD recovering a large chunk of its losses yesterday to 0.6405 – up 0.6% on the day.

Elsewhere, gold is also seen recovering back to $3,259 and holding the line near its 1 May low of $3,201 amid the drop yesterday.

Coming up later today, we’ll have the US CPI report to add to the mix. We’re not likely to see any major impact from tariffs show up though, so any kneejerk reaction to the numbers should be easily brushed aside.

This article was written by Justin Low at www.forexlive.com.