Major currencies aren’t doing much to start the new week
Markets are starting to get used to the PBOC fixing the yuan above 7.00 per dollar as we’re seeing a much calmer start to proceedings in the new week.
That said, amid thin liquidity (Tokyo holiday), there was a bit of defensive flows into yen and gold to start the session though nothing major thus far. USD/JPY holds lower around 105.40-50 currently with large expiries seen at 105.50 rolling off today.
Other major currencies are more subdued with less than 0.1% change against the dollar as we begin the European morning. The pound gained early on but has since given back those gains to stay near unchanged levels at the moment.
Looking ahead, it’s all about the ebb and flow today with the larger backdrop still comprising of ongoing US-China trade tensions, the global economic slowdown, and Brexit worries. As such, be mindful about changes in the risk mood as that will be key for trading sentiment as we begin the new week.