Forex Today: Dollar grinds lower amid trade optimism, thin markets

Here is what you need to know on Friday, December 27:

Broad US dollar weakness extended into Asia this Friday, with year-end holiday-thinned trading to keep most majors in tight trading ranges.          

The dust settled after the Christmas day volatile moves in the US dollar index. The Aussie sits at five-month tops above 0.6950 on fresh US-China trade optimism after Beijing said it is in close touch with the US on a trade deal signing ceremony.

USD/JPY found a floor near 109.40 but the yen remained supported by the North Korean headlines and upbeat Japanese inflation figures. BOJ’s Summary of Opinions quoted the board members, saying that its appropriate to maintain the current policy as momentum for hitting price goal not heightening further.

EUR/USD consolidated near five-day highs of 1.1122 while the Cable traded choppy around the 1.30 handle         

Among related markets, Asian stocks hit 1-month highs, Treasury yields traded on the back foot while S&P 500 futures reported moderate gains.

Gold kept its bullish momentum intact above $1500. Crude oil traded close to three-month tops on trade deal hopes and solid US Consumer Spending data.  

Cryptocurrencies reversed the recent upsurge. Bitcoin eased below $ 7,200 mark.