This morning, the US dollar and Japanese yen are on the rise as Syria tensions mount. With Trump threatening military action, stock markets continue to sell-off, while currency market reaction has remain relatively muted. The dollar and yen sold off again yesterday (mainly on the back of poor US CPI), but the reality of action has spurred markets into seeking out the relative safety of these global reserve currencies.
Most dollar pairs are lower this morning, erasing yesterday’s gains. The USD/CAD is on the rise despite oil prices continuing to climb well above $70.
The yen pairs higher, but with less intent. The USD/JPY has made the biggest gains, erasing half of yesterday’s losses, while the AUD/JPY is on the back foot.
Gold and silver are on the back foot as dollar strength takes hold.
We start today, with MPC member Broadbent speaking at 07.30.
The UK BOE credit conditions survey is at 09.30.
At 12.30, we have ECB monetary policy meeting accounts.
US unemployment claims and Canadian NHPI at 13.30.
German Buba President Weidmann speaks at 17.00.
BOE governor Carney speaks at 20.00.
With the US dollar returning to form, the USD/CHF is putting a small but steady run together over the last couple of days.