FX Update: The Dollar has continued to trade with a softening bias
FX Update: The Dollar has continued to trade with a softening bias, aside from the case of USD-JPY, which posted a two-month high at 112.43 amid a backdrop of rallying stock markets in Asia. Sentiment has been buoyed by pledges of pro-investment and pro-growth measures by China, North Korea's Kim vow to work on the "complete denuclearization" of the Korean Peninsula, and with Trump declaring that the U.S. trade deal with South Korea has been "fully renegotiated." These factors have offset the escalation in the U.S.-China trade war. The biggest movers out of the main Dollar pairings and associated cross rates have been AUD-USD and AUD-JPY, with each showing a gain of 0.4% and with both trading in three-week high territory. EUR-USD lifted out of an intraday low at 1.1655 to 1.1687 before settling, holding comfortably below the three-week peak seen yesterday at 1.1717. Cable edged out a two-month high at 1.3176 during the Tokyo AM session, since settling around the 1.3150 mark.