Greenback holding its own despite Fed end-of-rate hike worries
Most major currencies are still sitting in a relatively narrow range to start the week and are little changed on the day so far. There's been quite a bit of chatter among market participants that the dollar's demise may be coming soon as the Fed is nearing its neutral rate, which would signal the end of its current tightening cycle.
That led to dollar offers on Friday but we're not seeing much continuation of that just yet as we begin the new week.
Instead, the early movers today has been the aussie and kiwi as both currencies are weighed lower as a result of the trade tensions between US and China, which led to the APEC meeting failing to agree to a statement for the first time in history.
Surprisingly, equities have held their own despite E-minis trading lower by about 0.3%. The Nikkei closed higher earlier and Chinese equities are also near the highs for the day currently up about 0.6%.
The session ahead promises more Brexit headlines to come so for the pound, the current calm is surely a short-lived one. The latest on the Brexit rhetoric is that there are reportedly 42 votes against Theresa May for a no-confidence motion. Expect that to be one of the main attractions in European trading later in the day.
