The US dollar is attracting a few bids with a lower EUR, AUD, NZD, GBP.
CAD, yen and CHF are little changed.
Earlier we had the news out of London:
Lutnick says reached a framework with China, if approved will implement Geneva agreement
The US and China agreed in Geneva last month to lower tariffs. The agreement Lutnick is announcing is, in his own words,
“a handshake for a framework” to “start to implement that framework” as long as both Trump, and Chinese President Xi approve
This is not much of an announcement, to implement an already agreed upon agreement, subject to approval.
As for risk FX, its attracting more offers than bids.
Mix in the news that tariffs are still in place:
U.S. appeals court allows Trump tariffs to stay in place during legal challenge
And we have a market casting a sceptical eye on risk FX.
Not that swings are large, activity is a little quiet ahead of US data due later today:
US CPI data due Wednesday, core expected just under 3% y/yBofA and Morgan Stanley expectations for the May US CPI report on WednesdayGoldman Sachs expect Trump’s tariffs to lift inflation despite easing pressures elsewhere
Please excuse the big red splotch in the chart … Windows keeps telling me Telegram has been ‘restored up’.
This article was written by Eamonn Sheridan at www.forexlive.com.