The dollar has remained heavy, although having lifted out of its lows yesterday.

Amid concerns about a second wave of coronavirus infections as economies reopen, and with disinflationary pressures taking a grip, and U.S. money markets going some way to pricing in negative interest rates, the pressure is mounting on the Fed, which has been weighing on the dollar. USD-JPY has edged out a two-day low at 106.97, extending the correction from the 20-day high that was seen on Monday at 107.78. EUR-USD has been entrenched in a narrow range near 1.0850,

holding below yesterday's eight-day high at 1.0885. Most commodity currencies have been stable today after coming under pressure yesterday, although the New Zealand dollar has been an exception, dropping sharply after the RBNZ nearly doubled its QE program today.

NZD-USD dropped to six-day lows in testing the 0.6000 level. Stock markets have been mixed, dropping in Europe after most Asia-Pacific markets managed to pare early losses. S&P 500 futures managed to lift out of the red, and were showing a 0.5% gain heading into the Wall Street open. AUD-USD has been settled in the mid-to-upper 0.6400s, holding above yesterday's six-day low at 0.6431.

USD-CAD edged out a six-day high at 1.4085, driven by moderate underperformance in the Canadian dollar, which has come with oil prices turning softer after seeing one-month highs yesterday. Market attention is now on today's speech by Fed chair Powell (from 09:00 ET/13:00 GMT). We expect him to dismiss the view that rates will be