Soft risk sentiment continues to overshadow the FX market. News of weaker Chinese trade data weighed on Asian market sentiment and commodity prices, adding to headwinds from Monday’s (Moody’s) downgrade of US regional banks' credit ratings. Additional pressure on stocks came from a decision in Italy to impose a windfall tax on domestic bank profits. 

The USD is trading broadly higher, reversing some of the losses made around the cooler jobs data in the US last week. Gains in the DXY are still likely to struggle in the upper 102 area, assuming the risk backdrop does not deteriorate significantly further.