Dollar Recovers after Tuesday Selling20 February 2019 by Dave Evans
Morning Report: 07.00 London
The US dollar index is back on the rise, following steady losses yesterday.
The GBP/USD was the star of the show yesterday, with hefty gains pushing the pair through the 1.3050 level. The pound is slipping back slightly this morning, but recent gains are holding. The rally is almost entirely Brexit confidence related after yesterday’s economic data fell below expectations.
The EUR/USD also on the back foot after lagging the pound’s gains yesterday. The EUR/GBP is making tentative gains after heavy losses yesterday that brought it to its lowest levels for February.
The AUD/USD is on the back foot after breaking through the 0.7150 level yesterday. Meanwhile, the USD/CAD is continuing its recent down swing, selling off for the last four days. Meanwhile, the USD/CHF is rallying off the parity line following heavy selling yesterday.
The yen pairs are positive, with the USD/JPY pushing higher to test the 111.00 level from below. The EUR/JPY is rallying for the third straight day, testing the 126.00 level. Meanwhile, the GBP/JPY is continuing its impressive run to test the 145.00 level.
Coming up today
Today’s highlight is the FOMC meeting minutes at 19.00.
The GBP/JPY continues to rise, defying Brexit headlines. Traders remain confident that the UK will avoid a disastrous scenario (at least within the coming months).