The ranges for the day are still relatively narrow for the most part, with USD/JPY again holding the largest one. That said, even the range there is just a little over 60 pips with the pair continuing to gyrate in and around the 145.00 mark.

The dollar did threaten a stronger push higher against the euro and pound overnight. But that didn’t quite materialise by the end of it, despite the selloff in risk trades.

The commodity currencies were the ones that bore the brunt of the declines instead, especially the antipodeans. The push higher in USD/CAD is also helped by drag in oil prices, with WTI crude now threatening a fall below $70. As for today, the Bank of Canada will be a key risk event for the loonie with traders eyeing a potential surprise 50 bps move.

As for the rest of the major currencies, we might see things pick up later in Europe and US in following the risk mood. That especially as equities are staying on the defensive as noted here. So, that will be something to be mindful of at least.

This article was written by Justin Low at www.forexlive.com.