This morning, the US dollar index is on the back foot ahead of today’s US GDP meeting. Markets are jittery as trade talks with China resume.
In Europe, the pound is recovering after another volatile session that saw confidence oscillate despite Theresa May’s offer to resign. The GBP/USD is rising after dropping yesterday in reaction to May’s resignation offer and subsequent stalemate. The EUR/GBP is on the back foot as the pound gains control, erasing all of yesterday’s negativity. The GBP/JPY is making follow-on losses after dropping below 146.00 yesterday.
The EUR/USD is on the rise after holding support around 1.1250. The AUD/USD is on the rise and attempting to redress yesterday’s losses that saw the pair drop below 0.7100.
The USD/CAD is holding above 1.3400 for now, while the Swiss franc continues to struggle as the USD/CHF holds above 0.9950.
Yen pairs are on the back foot as the USD/JPY continues to drop from the March highs to test 110.00. The AUD/JPY is lower, but holding just above 78.00 so far. The EUR/JPY also continues to struggling after breaking through the 124.00 level.
Gold is nudging higher after two days of losses that pushed the pair below $1320.
Today, we have US member Quarles speaking at 11.15.
US Final GDP is at 12.30.
FOMC member Clarida speaks at 13.30, with Bowman speaking at 14.00 and Bullard speaking at 21.20.
The USD/JPY continues to struggle as the yen finds buyers in the face of China and Brexit uncertainty.
This trend is worth backing and a LOWER trade could be the best way to play this.