Forex today: tight ranges and summer drifts ahead of Yellen this week

Forex today was a typical summertime market; Ranges were narrow in FX and stocks drifted higher with a recovery in the tech sector.

Investors were on the hunt for yield with volatility lower after last week's washout of data leaving a dry landscape for traders today. Markets are holding out for Yellen's testimony on Wednesday while otherwise, the political environment is still unclear in the US without any consensus on healthcare yet while the window continues to narrow for 2017's tax cut legislation.

In respect to the currencies, the DXY is soft n the 96 handle as a result of fading fiscal policy in 2017. The pound is, however, unable to capitalise on the dollar's softness, -0.07%, while traders begin to outprice dubious hawkishness from the BoE. The euro also is down -0.02% but was supported earlier on the back of the German trade surplus. Yen buckles still through and above 114 the figure despite exporters hedging overnight, +0.11%. CAD was a good performer until the start of the US session and lost ground to finish, -0.1% vs the greenback and despite the BOC's expected rate hike this Wednesday. The antipodeans were supported with a boost tot he Aussie on mining stocks performances and buoyed metals in general, with a recovery in copper and upside in iron ore. Gold was making lower highs in the session, although supported on a soft USD; risk-on had a small pop in oil while OPEC is seen to be committed to the production cut and trying to talk both Nigeria and Libya into the production cuts.

Key events ahead in Asia

There are no key events in Asia, although Australia new home sales and NAB business confidence and conditions are on the cards as potential market movers. 

Key notes from US session

US Treasury yields record moderate losses on Monday

Gold intermarket: DXY soft on 96 struggles, commodities pick up the bid