This morning, safe havens remain on the back foot as China continues to shrug off trade tensions. The USD/JPY is unchanged this morning, but there were big gains for the dollar against the yen as US yields rise.
There are big gains for the Australian dollar, with the AUD/JPY and AUD/USD up by around 0.33%, building on yesterday’s gains.
Dollar pairs are generally mixed, with the EUR/USD making slight gains, while the GBP/USD slipping lower and erasing most of yesterday’s small gains. The EUR/GBP is rallying this morning as the euro takes charge for the first time in four sessions.
By contrast, the Canadian dollar continues to out-perform as the USD/CAD slips lower for the second straight day on trade hopes.
The USD/CHF is holding at the lows as the Swiss franc for now, keeps its safe haven gains.
Other yen pairs are mixed, with the EUR/JPY rallying and the GBP/JPY making slight losses.
Today, we have UK CPI, RPI and PPI at 09.30.
US building permits and housing starts are at 13.30.
ECB President Draghi at 14.00.
US crude oil inventories are at 15.30.
Optimism is high for a Canadian trade deal, making the USD/CAD an attractive option.