A largely uneventful day in FX, but with the risk tide on the positive side.
The JPY was on the back foot across the board, though USD/JPY topped out well ahead of 110.00 despite a heavy Wall Street showing.
Part of this may be down to some moderation in the USD recovery, largely against the CAD, AUD and GBP, though the latter primarily on short covering ahead of the BoE/QIR on Thursday. After 5 straight days of gains, some moderation looks to be in play.
EUR/USD made a fresh cycle low at 1.1360, but the marginally lower base was followed up with a return to 1.1400+. Cable is running up against some resistance in the 1.4465-75 area, alongside EUR/GBP buying ahead of .7850. The UK trade deficit was narrower than expected, but the higher German surplus was more significant. This was offset by weaker industrial/manufacturing production in France.
Oil prices have stabilized along with stocks, but the USD/CAD downturn has run into support ahead of 1.2900. API later tonight may see 1.2900 or 1.3000 tested later on.
Calls for the RBA to stay on hold in June have given AUD/USD some support, with strong bids at .7300 hit in Asia today.