Do be reminded that Japanese markets are closed for the day
And that has added to the thin liquidity seen so far in the currencies space as the day begins. Most major currencies are still trading tepidly within narrow ranges. Despite the kiwi being the notable loser in all of this, down 0.2%, in terms of pips NZD/USD sits in a 22 pips range only.
The kiwi appears to be the only currency reacting to the potential escalation in trade tensions between US and China as it trades weaker alongside Asian equities. There isn't much movement elsewhere in light of the closure of Japanese markets but things should pick up when European traders join the fray soon enough.
It's setting up to be a quiet start to the week with economic data releases also short of offering any new catalysts for markets. That means we're likely to see cautious and slow trading as markets will be anticipating potential trade headlines to come later when Trump wakes up in about five to six hours from now.
Here are the ranges so far for dollar pairs:
- EUR/USD - 19 pips
- USD/JPY - 18 pips
- GBP/USD - 26 pips
- USD/CHF - 22 pips
- USD/CAD - 19 pips
- AUD/USD - 21 pips
- NZD/USD - 22 pips
