FX Update: The Dollar has been trading on a softer footing
FX Update: The Dollar has been trading on a softer footing. EUR-USD has settled back 1.1500 after Fed's Clarida said that the central bank can afford to be patient, further affirming the shift-to-neutral change at the U.S. central bank, though the pair has remained below yesterday's three-month peak at 1.1570. Analysts're not overly bullish of EUR-USD, despite the dollar-weakening Fed shift to a neutral-from-hawkish policy stance, given signs of flagging growth momentum in the Eurozone and given the risk of a disorderly no-deal Brexit scenario (although this is not our central view), which would have ramification for the Eurozone economy. ECB's Villeroy said earlier that downside risks to the outlook have increased while reaffirming a wait-and-see policy stance. USD-JPY has been trading in the low-to-mid 108.0s, holding below yesterday's 108.51 peak. The pairing is being held back by an overall soft track in the Dollar, while the Yen has in the meanwhile lost ground to the Dollar bloc currencies, which have returned to outperformance mode amid a backdrop of rising global equity markets. News that China's Vice Premier is to travel to Washington DC for trade talks has been tonic for investors, offsetting news that Beijing will lower its 2019 GDP growth target from 6.5% to 6.0%. AUD-USD printed a one-month high at 0.7235, and NZD-USD a three-week peak at 0.6840.