Central bank focus starting to come into play
The kiwi is holding mild gains but really it isn't telling much with NZD/USD sitting within a 18 pips range as we begin the European morning. Meanwhile, the yen is holding a little weaker despite markets looking somewhat calmer on the session.
US futures are nearly flat while bond yields are reflecting similar sentiment, offering little for market participants to go on for the time being.
There is some talk of mild trade optimism but in my view, when Mnuchin suggested that the yuan will be a focus in talks next month, it is going to put the brakes on any potential progress because that is an issue that China won't budge on.
Looking ahead, it's all about central bank focus now over the next 9 days with the ECB set to come this Thursday before we get to the Fed, BOJ, SNB and BOE next week. As such, expect markets to hold more sideways and shifty in the mean time.
