Markets remain cautious this morning ahead of Wednesday’s FOMC meeting Where expectations are high for a 0.25% increase in rates.
The dollar is nipping lower slightly, in a move that is helping the dollar pairs to increase slightly. The AUD/USD is stringing two strong days together on the bounce, while the NZD/USD is set for three good days in a row. The GBP/USD and EUR/USD are unchanged.
After last week’s flurry of excitement surrounding a Brexit deal, the EUR/GBP is unchanged this morning. This puts the pair back in the middle of the range since October.
Most yen pairs are on the back foot, with the exception of the AUD/JPY which is making gains.
Gold is tentatively higher after selling off since the end of November.
Coming up today, we have UK CPI at 09.30, released alongside PPI and RPI.
German ZEW economic sentiment follows at 10.00.
US PPI is released at 13.30, with core PPI at the same time.
RBA governor Lowe speaks at 22.15.
The euro and pound are cancelling each other out at the moment largely. Each large move in one direction appears to be cancelled out shortly after with a retreat back in the other direction.