It was a mixed session in European morning trade today with regional indices looking more tepid while US futures kept somewhat steadier after the retreat yesterday.
The dollar is also a touch softer on the balance of things but most of that is tied to a nudge lower in USD/JPY down to four-week lows from 109.60 to 109.25.
That said, the pair is still sitting within its range since mid-July between 109.00 and 110.60-70 with Treasury yields also exhibiting a similar price action for now.
Meanwhile, the euro is a touch higher against the dollar but sticking around 1.1815-30 while the pound rose slightly after hotter-than-expected UK inflation data before gains were pared back a little during the session.
GBP/USD moved up from 1.3815 to 1.3840 but is now hovering around 1.3820 levels.
Elsewhere, oil is a decent mover so far on the day as WTI stretches gains on the week in a push to $71.60 – its highest since 3 August.
Going back to FX, it looks like we’re still in for more of a mixed bag in terms of trading sentiment (especially the dollar) until we get to the FOMC next week. As macro strategist, Kit Juckes, rightfully points out:
The current flow of economic data on the other hand, just adds to uncertainty and confusion which isn’t a catalyst for either volatility or the emergence of new trends in the currency market.