“There is no particular headline, but I’m seeing early sellers out of Europe,” said Stephen Innes, a senior currencies trader at Oanda Corp. in Singapore. “I suspect more a case of pre-Article 50 jitters and to a lesser degree the Scottish referendum noise. Risk in general, is holding up, so I suspect the combination of Fed policy and political uncertainty are the main culprits.”
The selloff comes a day after Scottish First Minister Nicola Sturgeon signalled the start of a legal process for an independence referendum, while the U.K. parliament gave May permission to start Brexit talks. The dollar traded in a tight range against most other major peers with turnover below average as traders held on to positions ahead of the Federal Open Market Committee two-day policy meeting starting today.
Australia’s dollar fell after February business confidence declined though losses were stemmed by a mixed set of Chinese economic data.
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