The pound is also mildly higher as Brexit continues to sit in limbo
The Japanese yen is holding firm as risk sentiment in Asia turned from being more optimistic to become more cautious ahead of European trading. China's Shanghai Composite index saw gains of 1.5% erased as it is now down by 0.6% on the day. Meanwhile, US equity futures are also trading at the lows down by 0.2% and overall sluggish sentiment is helping to keep the yen underpinned on the session.
The British pound is somewhat steady as Brexit talks between the government and the Labour party looks set to continue today. Progress is still rather benign before European leaders will be meeting in Brussels on Wednesday to discuss on May's request to extend Brexit to 30 June as she continues to seek a cross-party solution/compromise.
The laggard so far on the day has been the Australian dollar as it slips under the 0.7100 handle against the greenback, not helped by sluggish job vacancies survey earlier. The inability for the aussie to hold above near-term resistance around 0.7130-50 is proving to be the key drag for the currency since last week.
Looking ahead, the economic calendar is rather bare but expect more Brexit headlines and changes to the risk tone to dominate trading sentiment today. Also, be mindful of large expiries on days like these with EUR/USD having a chunk at 1.1225 that could potentially keep price action limited around current levels.
