Pip Diddy

Unlike the previous week, the yen was stuck in ranges against its major counterparts last week. Will it take cues from bond yields again over the next couple of days?

Trading conditions were a bit choppy today. The session wasn’t a complete snooze fest, though, since AUD caught a bid while JPY was mostly weaker. And oddly enough, NZD also showed weakness.

Asian session forex traders shrugged of today’s data releases and focused on overall risk appetite and dollar selloff.

The euro whipped back and forth during the ECB presser as Draghi shared more insights on policy and exchange rates while the dollar drew some support from Trump’s remarks.

Most pairs were milling about in tight ranges during the session, likely because traders are waiting for what ECB Overlord Draghi has to say in the upcoming ECB presser. AUD did see some directional movement, though.

There were no major economic reports printed over the last couple of hours, so Asian session traders focused on pricing in themes from the previous sessions.

Dollar weakness was already in play earlier in the day after Treasury Secretary Mnuchin said that a lower currency is good for trade, and sellers showed no signs of stopping as more geopolitical concerns emerged.

The Greenback was already showing some weakness when the morning London session rolled around. However, that weakness got amplified when U.S. Treasury Secretary Mnuchin said that a weaker dollar is good for U.S. trade. 

A lack of market-moving catalysts inspired Asian session traders to continue selling the Greenback. Meanwhile, further losses in iron ore prices weighed on the Australian dollar.

So far, this year ain’t looking good for the dollar! The U.S. currency resumed its slump against its counterparts as risk appetite surged and medium-tier data fell short.