The USD has seen some across the board slippage in Asia, with EUR/USD up at 1.4110 from a North American close Monday around 1.4075, while cable is up at 1.6620 from around 1.6565.
Risk appetite remains in good shape, with Asian stocks, oil etc firmer , and this wil be weighing on the greenback.
There was also talk yesterday of month, quarter, half-year end dollar sales lined up for todays’ fixings, and this interest looks like it’s being front run.
Cable remains bid, managing to re-test previous 2009 high up at 1.6661 overnight, before settling back. Gfk UK consumer sentiment for June came in a -25, the highest read in 15 months, which will have helped underpin sterling.
There is some risk event for sterling today, in the form the final Q-1 GDP data which is widely expected to be revised lower. The data is out at 08:30 GMT, median forecasts calling for -2.1% q/q from initial -1.9% and -4.3% y/y from -4.1%. There must be lumpy stops lying not far north of aforementioned 2009 high up at 1.6661. Asia had the stops around 1.6675/80.