The Japanese Yen declined as most Asian stocks traded higher to start the trading week, pressuring the standby anti-risk currency. Meanwhile, the sentiment-linked Australian, Canadian and New Zealand Dollars led the way higher.
Looking ahead, a quiet economic calendar in European trading hours may give way to geopolitical jitters as the European Council President Donald Tusk gives a joint press conference with US Vice President Mike Pence. Last week, similar circumstances translated into US Dollar weakness.
Sentiment continues to look relatively upbeat however, with futures tracking top European and US equity index benchmarks pointing firmly higher. That suggests risk-on dynamics witnessed overnight have scope to carry forward.
In any case, follow-through may be limited with US markets closed for the President’s Day holiday. That is likely to translate into thin liquidity and generally muted price action. Traders would be wise to remember that low participation levels can amplify volatility if unexpected headline risk emerges however.
Asia Session
European Session
** All times listed in GMT. See the full DailyFX economic calendar here.
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