Dollar little changed ahead of European trading

Major currencies are not doing all too much in the new day with lights changes being observed ahead of European trading. This comes after the dollar fell back again yesterday, continuing the back and forth movements since the start of the week. That is exemplified by USD/JPY which fell over 150 pips on Monday before recovering that on Tuesday and then going back down by 150 pips again yesterday.

The pair is back up slightly to 143.00 again but traders are still left having to digest the softer US economic data yesterday.

Adding to the mix is still trade uncertainty with the appeals court ruling on Trump’s reciprocal tariffs also needing a response in the coming day(s). Then, there’s also watchful eyes on a potential Trump-Xi phone call before the weekend. Will it actually happen?

And before we wrap up the week, there will be the US non-farm payrolls data tomorrow.

All of that will keep things interesting in what has been a rather back and forth week thus far for FX trading.

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