Dollar remains soft post-Powell
The yen is leading the charge as we get into European trading as risk starts to turn on its head with Asian equities paring early gains and US Treasury yields dipping to start the day. The dollar remains soft after the purported dovish comments by Powell overnight and with the move lower in Treasury yields, it's not helping to support the greenback today.
The rest of the major currencies bloc continues to trade narrowly among one another but the aussie is benefiting slightly from bids in AUD/NZD as the kiwi finds itself on the back foot earlier in the day as NZD/USD tests the 200-day MA @ 0.6868. But the kiwi is recovering some poise now ahead of the next session with NZD/USD trading near the highs now @ 0.6874.
There isn't much notable action otherwise as markets are still looking to digest the implications of Powell's comments as we head closer to the weekend where the Trump-Xi summit will come into focus. In the meantime, keep an eye on market moves in Treasuries and watch out for headline risks to come from Brexit and Italy once again.
