The US dollar pairs are mixed after steady gains yesterday against the US dollar. Yesterday’s losses were sparked by Trump targeting Japan as the next trade partner up for re-negotiation.
The yen and Swiss franc were the biggest beneficiaries yesterday, with both the USD/CHF and USD/JPY sold off significantly. The USD/CHF is selling again this morning, hitting its lowest levels since April. The Swissy is enjoying interest as the safe haven of choice across Europe, breaking the 0.9700 level. The USD/JPY has been more range bound in the medium term, but yesterday still saw big losses for the pair, breaking through 111.00, with small gains this morning.
The AUD/USD is on the wane on the twin threat of Chinese and now Japanese trade wars. The 0.7150 level is the next test of resolve. Meanwhile, the AUD/JPY is following on from yesterday’s hefty losses, crashing through the 79.50 level to trade at 79.20.
The EUR/USD is slightly higher this morning, as the euro exerts a little more control following yesterday’s under-performance. The EUR/CHF crashed below 1.1300, completely erasing three days of gains. The EUR/GBP is slightly higher after a volatile if ultimately negative session yesterday. The EUR/JPY is posting a better performance though, above 128.50.
The GBP/USD is on the rise again, but Monday’s opening gap lower is yet to be recovered. The GBP/JPY is also making gains.
Today’s main ticket is US Non Farm Employment Change at 13.30. Average earnings and the unemployment rate are at the same time.
Canadian employment change data is at the same time.
The Swiss Franc is in hot demand but there’s still room for further losses from here.