A rather muted trading day so far
Once again, major currencies are lacking much poise in European morning trade and there has been a sense of trepidation for much – if not the entirety – of the week.
EUR/USD continues to keep in between 1.2100 and 1.2200 for the most part, showing little poise to really chase a breakout on either side.
Meanwhile, USD/JPY saw a retreat from above 110.00 after the non-farm payrolls report last week and has stuck in between 109.20 and 109.80 with little conviction to really run anywhere despite Treasury yields sliding lower.
GBP/USD was a decent mover yesterday as it climbed up from a low of 1.4080 to 1.4150 but is holding a touch softer on the day, keeping in the range of recent weeks:
Price action is moving back towards the key hourly moving averages @ 1.4150-51 now but the broader range of 1.4080 and 1.4200 is still holding this week.
Elsewhere, AUD/USD also continues to stick close to 0.7750 where a host of option expiries have been playing out at the level over the past few weeks as well.
Overall, there isn’t much conviction for FX traders to move it seems as we continue to count down to the FOMC meeting next week.
That said, keep an eye out on the bond market as that could lead to spillovers elsewhere should market participants start to digest the recent slip in Treasury yields this week.