The sudden pick up in risk appetite is translating to some softness in the dollar as we get things going on the session. The greenback was in a good spot technically to start the week but is seeing the optimism pulled back now as risk trades are making a stand before we get to Fed chair Powell's speech at Jackson Hole tomorrow.
EUR/USD is now up 0.5% to 1.0020, pushing past parity at the moment. Be wary that there are large option expiries rolling off later today at the figure level so that might keep price action a bit more anchored.
Meanwhile, GBP/USD has also climbed up by 0.4% to 1.1850 as buyers are pushing back against recent support levels at 1.1800 and the 14 July low at 1.1759 in trading this week:
The commodity currencies are also showing much more grit against the dollar now with USD/CAD down 0.4% to 1.2920 after having retested the 1.3000 mark yesterday. AUD/USD is also up 0.9% to 0.6970 now and is looking to try and make a run towards 0.7000 again before the main event tomorrow:
This comes as price held at one-month lows near the 5 August low at 0.6869 during the course of trading this week.
