Pip Diddy

Easing Brexit jitters continued to fuel risk appetite during today’s morning London session, so the higher-yielding currencies slapped the lower-yielding currencies around once more, except for the euro, since it showed strength during the session.

A pretty weak trading session for the dollar, as a lack of major reports encouraged forex traders to take a closer look at Yellen’s testimony.

Both Fed head Yellen and ECB Governor Draghi gave testimonies during the U.S. session but the latter had a mic drop moment when he shared that further stimulus is in the pipeline.

Risk sentiment was driving forex price action for the most part during today’s morning London session. And since risk appetite was the dominant sentiment, it naturally follows that the higher-yielders were giving the lower-yielding currencies the boot.

Forex trading was a mixed bag of nuts during the Asian session, as the optimism from more anti-Brexit poll results got mixed it with cautiousness ahead of Yellen’s testimony.

No data, no problem! Forex pairs were still on the move despite the lack of top-tier releases during the U.S. session, as traders zoomed in on Brexit polls.

The forex calendar for Monday’s morning London session was rather sparse, but there was enough action to keep the session interesting, as forex traders turned mainly to risk sentiment amid easing Brexit jitters for direction.

Risk appetite was the name of the game during the Asian forex trading session, as easing Brexit fears boosted the higher-yielding investments.

The main theme this week was the Japanese yen’s total domination, although we also have Loonie weakness as a secondary theme. And believe it or not, but the pound ended up as the second-strongest currency of the week. So, what was driving forex price action this week?

Not much on the docket for today’s morning London session, so trading conditions were rather tight. There was some noticeable movement from pound and euro pairs, however, likely because of easing Brexit concerns (or end-of-week profit-taking).