Major currency movement has been a little more subdued to start the day but the action should pick up soon enough and more so as we look towards North American trading later, following the moves that we saw in overnight trading.
Dollar pairs are the heavy focus as the risk mood remains more positive for the most part, despite the Nasdaq seeing a bit of a setback yesterday.
EUR/USD broke above 1.1500 for the first time since January 2019, GBP/USD moved above 1.2700 and its 200-day MA, USD/CAD fell below 1.3500 and its 200-day MA, AUD/USD aiming for 0.7200 on a break to fresh highs since April 2019, and NZD/USD firmly broke above 0.6600 to its highest levels since January.
As such, the focus remains on risk sentiment as we look towards the sessions ahead. European trading may be more quiet today but US trading should offer more once again, with the moves in Wall Street a key factor driving trading sentiment.
Elsewhere, gold and silver are continuing to break higher as well and are showing little signs of slowing down amid the dollar rout. The silver move is particularly impressive but I’d be mindful of any “too far, too fast” moves in commodities.
The pullback can be brutal at times. So, remember to manage risk levels accordingly.