Canadian dollar outperforms while yen lags
Australian dollar up this morning on positive trade talk, little change between euro and greenback ahead of tomorrow’s ECB.

EUR/USD: Limited risk-taking ahead of tomorrow’s much-awaited ECB
Risk-taking remains limited ahead of tomorrow's ECB event, with repositioning and readjustments more likely. Furthermore, in the bond market, the recent reversal has seen yields come back up significantly with the German 30-year briefly back in positive territory, though still well in the negative for the 10-year Bund. There's a dearth of data today following yesterday's light data out of the Eurozone that showed French and Italian industrial production posting worse than expected figures and the latter contracting with its previous revised into contraction as well. One item of only slight interest will be US PPI figures released tonight ahead of tomorrow's more anticipated CPI release.

GBP/USD: Better than expected data and absence of Brexit news keeps the pound outperforming
Yesterday's employment figures out of the UK were better than expected with average earnings gaining pace and the unemployment rate down a notch to 3.8% and followed up on what was better than expected GDP, trade, and manufacturing data on Monday. In the background, Brexit was the focus before, and with parliament suspended for over a month it'll be rumors and facts that'll sway this pair's price in one direction or another in the absence of any deal. Trading volatility has been more ideal as of late given the wilder than expected swings, but in the absence of any significant data or news and range-bound movement could take place. Yesterday’s movement was relatively sedate, with the pound the second-best performer and slightly besting the greenback.

USD/JPY: Yen underperforms again as US yields rise back up
Safe haven has been in slight retreat since last week, and this time around it was the yen alone that lagged significantly against the greenback whose yields are rising back up. That has kept this pair’s price moving north and offering more positive bias for the pair’s technicals on the daily as it steers clear of its 50-day moving average, bumping up against negative technical bias on the weekly whose bear trend channel could get breached. Should equities continue to post gains that would give this pair’s price a leg to stand on, though any clear undoing or risk-off theme would give the yen its shine back and hence the overall risk environment should be noted prior to initiating a trade.

USD/CAD: Canadian dollar outperforms and holds onto its gains despite retracement in energy
Oil prices have been in focus following successive gains, and the recent volatile movement was due to fresh news and data that were opposite. Yet, with energy finishing lower, the Canadian dollar still finished higher despite a weakness in its energy underlying, and in line with the pair’s current technical overview of an initializing bear trend and better than expected data, whereby housing figures out of Canada showed starts better than expected and month-on-month building permits growing by 3% following last month's similar sized contraction. Light data for the rest of the week out of Canada, which means energy prices and the greenback will likely drive this pair's price movement. In terms of sentiment, its back in the middle as shorts get enticed into taking profit.

AUD/USD: Failing to post another consecutive day of gains
Another day, but not another consecutive gain for this pair's price, following what was five days of gains in a row. Yesterday's business confidence figure out of NAB was a disappointment, with today morning's Westpac consumer figure contracting. As for iron ore which surged on Monday, yesterday's performance was consolidatory. Overall, AUD lagged but relatively low against the greenback, and not doing enough to undo its recent initializing bull trend, though price did go back below its 50-day moving average and now rests back below all its main long-term moving averages.

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