The dollar recovers some poise after yesterday's losses
But it is the loonie that is the one leading the charge as we begin European trading. USD/CAD continues to slip following the break of the trendline support overnight and that is helping to aid the loonie's move higher alongside stable oil prices to start the year.
The greenback on the other hand is recouping some of its overnight losses as markets continue to weigh a more dovish Fed while awaiting further developments on the trade war. There's also Trump's speech set to come so markets will be eyeing that for any further changes to the border security/US shutdown situation.
Other currencies are mostly lower against the greenback with little change among each other. The aussie is leading losses on the day, not helped by a softer trade balance report than expected earlier.
Aside from that, risk sentiment is rather muted to begin the day with Asian stocks trading mixed while US equity futures are up by just 0.2% currently. The silence from US-China trade talks in Beijing is certainly keeping markets on edge for the time being.
