Forex today: dollar benefits from less risk-off

Forex today was less risk off and the dollar benefitted from the flows out of safe havens while noise around N.Korea quietens down.

DXY was up +0.37% and moved higher on the 93 handle, however, -8.61% YTD. Fed's Dudley supported the case for the dollar as well today, favouring a rate hike again in 2017 moving the odds of a hike in December to around 35%. The US ten year yields were +1.525 trading between 2.1958% - 2.2272%. The euro was already damaged by the miss in European IP data and lower front end yields. For the US session, the euro traded as low as 1.1769 from 1.1838 highs.

Sterling also slipped to 1.2956 from 1.3022 ahead of a busy week for the pound. The cross traded in a narrow 20 pip range between 0.9070/90. High betas were subdued with the Kiwi between a 50 pip range of consolidation between 0.7281/34 and the Aussie in a 25 pip range 0.7845/70. WTI fell sharply from $49.29 to $47.54 with storage data expected to show a build and subsequently taking USD/CAD to 1.2727 from 1.2672 lows.

Key events coming up in Asia

The minutes of the Reserve Bank of Australia meeting

Key notes from US session 

Fed's Dudley: Still sees US growth at 2%

A diplomatic solution to the North Korea missile crisis? - UOB