Dollar falls as risk appetite picks up to start the session

The sudden pick up in risk appetite is translating to some softness in the dollar as we get things going on the session. The greenback was in a good spot technically to start the week but is seeing the optimism pulled back now as risk trades are making a stand before we get to Fed chair Powell’s speech at Jackson Hole tomorrow.

EUR/USD is now up 0.5% to 1.0020, pushing past parity at the moment. Be wary that there are large option expiries rolling off later today at the figure level so that might keep price action a bit more anchored.

Meanwhile, GBP/USD has also climbed up by 0.4% to 1.1850 as buyers are pushing back against recent support levels at 1.1800 and the 14 July low at 1.1759 in trading this week:

The commodity currencies are also showing much more grit against the dollar now with USD/CAD down 0.4% to 1.2920 after having retested the 1.3000 mark yesterday. AUD/USD is also up 0.9% to 0.6970 now and is looking to try and make a run towards 0.7000 again before the main event tomorrow:

This comes as price held at one-month lows near the 5 August low at 0.6869 during the course of trading this week.