The British pound remains under pressure ahead of another crucial EU meeting, while traders are eyeing today’s UK borrowing nervously. The GBP/JPY and GBP/USD have continued to slip lower. The pound made losses against the dollar yesterday, while the likes of the euro and Aussie made gains, forcing the EUR/GBP higher.
The euro bounced off the lows yesterday, with minor losses this morning. This comes despite mounting concerns over the state of Italian politics as a political novice is proposed for PM.
As such, the euro remains weak against the Swissy, with the EUR/CHF lower again after a brief rally yesterday.
The Aussie remains strong though, rebounding well against the dollar and continuing to pop higher against the yen.
The USD/JPY is slipping back this morning, but is holding at the highs as dollar strength trumps the yens haven status.
The dollar index remains on the back foot after a hefty reversal yesterday.
Today, we have UK MPC member Vliegh speaking at 21.15
UK public sector net borrowing is at 09.30.
UK inflation report hearings are at 10.00.
The euro has lost considerable ground against the Australian dollar of late as the Aussie powers higher on regional risk relief.
The euro continues to be weighed down by Italian politics so the EUR/AUD’s downswing could have further to go.
This morning, the US dollar continues to dominate, with added fuel coming from hopes for a China-US trade deal. The US dollar index has hit its highs levels for the year as dollar pairs remain under pressure.
The EUR/USD is lower again, touching 1.1700 and falling for the sixth day in a row. The GBP/USD is under performing this morning, falling to its lowest level for 2018. The EUR/GBP rallied for the third day in a row.
Meanwhile, the Aussie dollar has gapped higher against the US dollar on hopes that the US-Chinese trade war won’t disrupt the Aussie economy. The AUD/JPY continues to trade higher after gapping at the opening.
The yen pairs generally continue to climb, USD/JPY is breaking 111.00 as the dollar dominates and the yen takes a back seat. The EUR/JPY is higher amid choppy trading, while the GBP/JPY gapped higher at the open, but still lags its peers.
We have a quiet day ahead today.
Gold continues to soften as dollar pressure continues to drive the precious metal lower.
There are numerous threads pulling at markets at the moment, including stress on emerging markets and Argentina, oil prices at 3 ½ year highs and soaring US Treasury yields. The clearest reaction has been seen on the USD/JPY as the yen soars on safe-haven interest. The USD/JPY is approaching 111.00 after breaking just three days ago.
Other yen pairs are on the rise, with the GBP/JPY knocking on the doors of 150.00.
The US dollar index remains at the highs, though has a negative bias this morning.
Dollar pairs are generally on the front foot this morning, with small gains for the EUR/USD and AUD/USD. The GBP/USD is struggling, however.
Gold continues to struggle after Tuesday’s collapse, while silver is holding up relatively well.
FOMC Mester speaks at 08.00.
Canadian inflation is at 13.30
The dollar may be under some pressure this morning, but the pound has many question marks hanging over it, not least its menopausal economy.
This morning, the US dollar remains on the back foot following poor economic data yesterday. Housing starts and Capacity Utilization Rate both dropped below expectations, while global tensions eased. The US dollar index has dropped off the highs for the second straight highs.
By contrast the British pound enjoyed strong interest, out performing the likes of the euro yesterday on reports that the UK will stay tied to the EU customs union beyond 2021. The GBP/USD lifted off the highs, while the EUR/GBP dropped as the pound made ground against the euro. The GBP/JPY extended its winning run, though the pound’s move is running out of steam this morning.
Other dollar pairs are enjoying gains this morning, with the EUR/USD climbing after stalling yesterday. The AUD/USD is enjoying its second straight day of gains despite mixed employment data.
Yen pairs are mixed, with the USD/JPY lower and the EUR/JPY slipping lower.
The Canadian dollar continues to out-perform, with the USD/CAD falling for the second straight day. Oil prices continue to make gains.
Canadian foreign securities purchases are at 13.30.
At the same time, we have US Philly Fed manufacturing index and unemployment claims.
MPC member Haldane speaks at 17.00
After a period of gains, the EUR/CHF has started to turn significantly. The euro continues to feel the pressure, while the Swiss franc gains stability.
This morning, the dollar remains in control as risk factors flood into global markets. North Korean talks have collapsed, with Pyongyang blaming the one sided nature of demands and negotiations.
Dollar pairs generally are unchanged this morning, but pressure remains. The euro is under particular pressure, after documents released from the Five Star movement revealed initial desires to remove Italy from the euro. The EUR/USD plunged yesterday, while the EUR/GBP slipped to two straight losses in a low.
The EUR/GBP has a positive bias yesterday, but there were significant losses yesterday There is considerable pressure on the euro, despite UK earnings and unemployment claims data disappointing.
The USD/JPY has continued to climb, breaking the 110.00 level. Other yen pairs have been more circumspect, with the EUR/JPY lagging behind.
Gold suffered heavy selling yesterday as the dollar takes control.
Today we have Canadian manufacturing sales at 13.30.
At the same time, we have US building permits and housing starts. FOMC member Bostic speaks at the same time.
At 14.15, we have capacity utilisation rate and industrial production.
US Mortgage delinquencies are at 15.00, with crude oil inventories released at 15.30.
BOC governing council member Schembri speaks at 17.00, with SNB chairman Jordan speaking at the same time.
The euro continues to struggle, not helped by ongoing problems in Italy which hint at cracks within a core EU nation.
This morning, the euro is retreating again after reaching a high tide just shy of 1.2000 yesterday. The euro popped higher and subsequently retreated on comments from ECB member Villeroy indicated that a rate hike was on the cards sooner than expected. The EUR/USD is on the back foot, while the EUR/GBP has a negative bias again. The EUR/JPY is on the rise by contrast, largely driven by a weaker yen.
Other dollar pairs are following suit, with the GBP/USD and AUD/USD slipping lower. The latter impacted by a relatively dovish RBA meeting. The GBP/USD has held together at the lows recently though with some volatile trading.
The USD/CAD has risen for the third straight day despite oil prices making a pop higher.
The yen pairs are on the rise, fuelled by the stronger dollar and ongoing weakness in the yen.
Other yen pairs have a positive bias, but are mixed, with the AUD/JPY barely changed today.
Gold continues to feel the dollar heat, dropping for the third straight day.
Coming up today, we have UK average earnings index, claimant count change and the unemployment rate at 09.30.
European flash GDP is at 10.00, German ZEW economic sentiment at the same time.
US core retail sales with empire state manufacturing index are at 13.30.
FOMC member Williams speaks at 17.45.
The USD/JPY is banging on the doors of 110.00 and today could see it push through.
Markets are becalmed this morning as tensions ease between China and US, while Trump axing of the Iran deal has so far failed to worry markets too much.
The dollar index is unchanged, but the bull trend has certain paused if not turned.
Both the EUR/USD and GBP/USD are higher, but the former continuing its impressive recovery off the lows. The EUR/USD has rallied well since breaching the 1.1900 level. The EUR/GBP remains in the 0.88 region, the lower range of the median level over the last nine months.
The AUD/USD unchanged though after a similar rally off the lows.
The yen pairs are following suit, with the GBP/JPY and EUR/JPY making gains while the USD/JPY is unchanged.
We have a quiet day today, with only FOMC member Mester speaking at 07.45 the only item of not.
The USD/CHF had a powerful run that saw it breach parity levels. This may have exhausted some of the buying momentum, making downside bets look attractive.
This morning, the British pound remains under pressure following yesterday’s BOE meeting. The MPC downgraded growth and inflation, with expectations for the next rate increase inching into the future. The GBP/USD dropped in volatile trading, with small gains this morning. Meanwhile, the EUR/GBP shot higher as the euro holds its ground. The GBP/JPY extended its losing run seen since mid May.
Other dollar pairs are performing well, with small gains this morning building on the back of yesterday’s hefty rally for the likes of the AUD/USD and EUR/USD.
The dollar index remains on the back foot, with a potential reversal on the cards.
The USD/CAD remains on a losing run, with the Canadian dollar gathering momentum as oil prices spike higher.
Yen pairs are generally unchanged this morning, with the USD/JPY struggling to pass through the 110.00 level.
Today we have Canadian employment change at 13.30, released alongside the employment rate.
Canadian Government council member Wilkins speaks at 14.10.
ECB president Draghi speaks at 14.15.
Preliminary UoM consumer sentiment is at 15.00.
The Aussie is holding up well, while the euro continues to falter. As such the EUR/AUD looks attractive for further downside bets.
This morning, the US dollar index is on the back foot as money flows into the safety of the Japanese yen. Traders are seeking out safer harbours especially in emerging markets after the Malaysian opposition sprung a surprise election victory.
The GBP/USD and EUR/USD are rising after weeks of losses, while the AUD/USD builds on yesterday’s gains.
The USD/CAD continues to sell-off after hefty losses yesterday on the back of an Iran fuelled oil price surge.
Even the USD/CHF looks to be peeling back from the highs.
Yen pairs are mixed after hefty gains made yesterday. The USD/JPY is on the back foot, while the EUR/JPY and GBP/JPY build on yesterday’s gains.
It is a bank holiday in France and Germany.
UK manufacturing production is at 09.30, released at the same time is UK goods trade balance.
UK BOE inflation report, the MPC monetary policy and official bank rate are at 12.00. At the same time we have the asset purchase facility.
At 13.30, we have US CPI and unemployment claims.
The Canadian dollar has picked up momentum as the Iran deal falters. Meanwhile the euro continues to struggle, forcing the EUR/CAD lower.
The dollar index is in control once again as dollar pairs fall on the back foot. This comes despite Trump removing the US from the Iran nuclear deal.
The EUR/USD is trading well below 1.1900, extending its recent losing run. The GBP/USD is also struggling, but is holding up relatively well compared to the euro. The EUR/GBP fell yesterday though is unchanged this morning.
Meanwhile, the AUD/USD continues its losing run, falling to its lowest level since June 2017.
Yen pairs have a positive bias though, helped by the resurgent dollar. This reverses what has been a consistent losing run for many pairs.
Today, we have US PPI and Canadian building permits at 13.30.
US crude oil inventories are at 15.30.
The New Zealand rate statement is at 22.00.
The AUD/USD has been on a consistent losing run, as the Australasian region comes under consistent pressure.