The dollar index is in demand this morning, building on yesterday’s gains as traders seek out some sort of stability amid testing times. Yesterday’s economic data was mixed at best, with German and EU flash manufacturing PMI coming out below expectations and US Philly Fed Manufacturing also dropping more than expected.
Dollar pairs continue to struggle, with the AUD/USD holding just above 0.7100. The EUR/USD is unchanged, while the GBP/USD is marking three days of minor losses.
The USD/CAD is building on yesterday’s reversal, but struggling to break through 1.3250. Meanwhile, the USD/CHF continues to hold just above 1.0000.
The USD/JPY is slightly higher, with the 111.00 level the next barrier to test. The EUR/JPY is sitting just below the February highs, with the GBP/JPY poised after two rangebound days. The AUD/JPY remains pressured and is unchanged after yesterday’s reversal.
Gold suffered as significant reversal yesterday, falling from $1340 to test $1320.
Today, we have German Ifo business climate.
At 13.30, we have Canadian Core Retail Sales.
FOMC member Williams speaks at 15.15.
ECB President Draghi speaks at 15.30.
FOMC member Clarida, Bullard, Quarles and Williams speak at 17.00, 18.30, 18.30 and 22.30 respectively.
The GBP/JPY has shown remarkable resilience in the face of Brexit uncertainty. Overhead resistance has proven tricky, but should this break, the next target is above 148.00.