FX Update: The Dollar has been trading on a softer tack
FX Update: The Dollar has been trading on a softer tack so far today, posting fresh lows in the cases against the Canadian and Australian Dollars, which have outperformed amid a backdrop of firmer crude and global equity markets, while still holding below recent lows versus other currencies. USD-CAD, now in its sixth consecutive session of decline, which has been concomitant with a series of higher rebound highs in oil prices, printed a five-week low at 1.3226, while AUD-USD lifted to a fresh three-week high at 0.7171. EUR-USD lifted back above 1.1450, but has remained within recent range bounds. USD-JPY and Yen crosses have remained buoyant amid the risk-on backdrop as hopes for a breakthrough in the U.S.-China trade standoff run high. Both sides agreed to extend talks into an unscheduled third day amid reports of progress on Chinese imports of U.S. goods and increased access to Chinese markets, and Bloomberg cited sources reporting that President Trump is now eager to strike a deal. The increased optimism has seen Fed funds futures price back in odds for a 25 bp rate hike in 2019. The Pound has been trading mixed, and analysts expect the currency to remain in a directional stasis until next Tuesday's UK Parliament vote on the Brexit deal.