World markets rallied hard yesterday as after the worst sell-off since 2015. The question now remains whether this will prove to be a dead cat bounce or the catalyst for renewed highs. On forex markets, the dollar has continued to weaken after a volatile session yesterday. Some traders are betting that Monday’s reaction might be enough to stave off a rate hike in the fed.
Dollar pairs are mixed, with the GBP/USD and EUR/USD rallying and building on yesterday’s gains. By contrast, the AUD/USD is struggling again after yesterdays tentative rally.
The pound is showing some fight, though is still the worse performer this week. The EUR/GBP is slipping lower, though has some way to go to reverse the week’s gains.
The yen pairs continue to be mixed, with the USD/JPY reversing this morning as the dollar loses out the yen. The AUD/JPY is the day’s worst performer after an impressive bounce yesterday. The GBP/JPY holding up well, building on yesterday’s gains.
Gold is higher today after yesterday’s losses.
At 08.30, we have Halifax HPI.
At 13.30, we get Canadian building permits and FOMC member Dudley speaking.
US Crude oil inventories are at 15.30.
The RBNZ policy statement is at 20.00.
The USD/JPY has been mixed these last few days, but the longer term down trend remains largely in tact.