Dollar cedes some ground as risk appetite perks up

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A more positive risk mood is pinning the dollar lower to start the session, with the greenback giving up its slight gains earlier for the most part. The euro and yen are a touch softer still against the dollar but most other major currencies are pulling higher.

GBP/USD is trading up to near 1.2500 again as buyers continue to poke and prod at the figure level this week:

Meanwhile, the more traditional risk currencies are also posting decent gains against the dollar now. USD/CAD is down 0.3% to just below 1.2800 while AUD/USD is up 0.2% to 0.7070 after having traded down close to 0.7000 earlier in the day:

AUDUSD D1 20-05

A weekly close above the 0.7000 mark will be a big win for buyers in breaking the downside momentum since April, at least in search of some additional breathing room.

The slight dollar retreat here comes as equities are continuing to push higher with S&P 500 futures now up 1% and European indices also posting gains of around 1.3% to 1.6% on the day.

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