FX Update: The dollar is at moderately softer levels
FX Update: The dollar is at moderately softer levels in quiet early-week trading. The narrow USD index is at 97.13 after closing out on Friday at 97.24, off the two-week high at 97.47. EUR-USD has been plying a narrow range near 1.1200, below seven-month highs at 1.1285, consolidating the modest losses seen following the ECB's policy guidance and inflation forecast downgrade last week. USD-JPY has opened in the week without fanfare, trading in a narrow range in the lower 110.0s, below Friday's eight-day peak at 110.81 and above last week's seven-week low at 109.11. Ditto for EUR-JPY and other yen crosses. Stock markets in Asia today traded mostly lower. The pound has been stable after tumbling by 2% late last week on the shocking election outcome in the UK. The quick move by prime minister May toward forming a minority government with the help of North Ireland's DUP party has managed to allay market concerns for now, although May herself is not out of the woods yet amid pressure for her to resign and there remains uncertainty about what the government's stance on Brexit will be, with negotiations set to start next Monday. A snap poll of 700 member of the UK's Institute of Directors found a "dramatic drop" in confidence following the hung parliament outcome of the election last Thursday.