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The historical meeting between U.S. president Donald Trump and N.K. leader Kim Jong-un went fairly well, with Kim confirming "unwavering commitment" to denuclearise. That will take time of course but should nevertheless provide some tailwind for risk trades. USD/JPY looks bullish just above 200 DMA, ahead of the U.S. CPI report coming up in the afternoon.
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BOE proceeds with caution, pound sells off
Bank of England left the official bank rate unchanged. Market had expected a hawkish hold, ideally a green light for a hike in August. That wasn't to be, instead they said the timing of the next hike depends on incoming economic data. GBP/USD adjusted lower but bounced back after U.S. CPI missed estimate prompted some profit taking on long dollar positions. 200 DMA near 1.355 is the bull/bear line in sand.
EUR/USD testing longer term trendline
Reaction to otherwise firm U.S. inflation report was somewhat a surprise. Risk sentiment improved this week and we seem to have returned to the previous regime where the dollar is used as a funding currency, despite rising interest rates. EUR/USD appears ready to break above the longer term trendline.