Pip Diddy

Risk sentiment was the name of the game during the Asian session, as market players focused on catching up to their counterparts from the previous sessions.

Dollar pairs were all over the place for the most part of the session, but relatively hawkish FOMC minutes gave the U.S. currency a bit more support.

Heightened geopolitical risks over Syria and falling bond yields gave the yen a boost during the session. The pound, meanwhile, was hit by selling pressure after the U.K. released a bunch of mostly disappointing economic reports.

A slew of data releases didn’t stop market players from turning to risk sentiment during the Asian session.

Market participants were in the mood for more risk in the latest New York session as White House officials sounded open to the idea of trade talks with China.

Hawkish comments from ECB’s Nowotny and BOE’s McCafferty respectively gave the euro and the pound a nice boost. The Greenback, meanwhile, ended up at the bottom of the forex heap.

Plot twist! Instead of fighting fury with fire, China’s Xi Jinping preached an “open” Chinese economy and lower tariffs for products including autos. Risk-taking ensued.

The Greenback was off to a weak start as market watchers awaited a fresh round of trade jabs between the U.S. and China. Even so, the Loonie and the Kiwi managed to rake in gains.

All the comdolls took a beating when word got around that China is mulling about the possibility of devaluing the yuan as a tool in trade negotiations. And among the comdolls, it was the Aussie that took the brunt of it.

Trade war fears kept dollar bulls away, but risk-taking eventually kept it afloat by the end of the week. Will this week’s catalysts give it a more uniform price action?