This morning, the US dollar index remains on the back foot after heavy selling yesterday. This comes after the Fed warned of how a sharp reversal in financial markets could have damaging effects on the economy.
The dollar pairs have positive bias today, with the EUR/USD posting the biggest gains yesterday. The GBP/USD is not far behind and is now set to post its eighth straight day of gains. The EUR/GBP continues to creep higher.
The NZD/USD is nudging higher and is set to make it four straight days of gains. The AUD/USD continues to lag, making tentative gains this morning.
The yen pairs are steady this morning after the USD/JPY posted heavy losses yesterday.
From 08.00, we have a number of European flash PMI data points, starting with French flash manufacturing and flash services at 08.00. At 08.30, we get the corresponding German data, with pan European data at 09.00.
At 09.30, we get UK second estimate GDP and preliminary business investment.
The ECB monetary policy meeting accounts are released at 12.30.
Canadian core retail sales are at 13.30.
SNB Chairman Jordan speaks at 16.30.
It is a US public holiday in honour of Thanksgiving.
The yen has continued to strengthen, while the dollar comes off the boil. The USD/JPY’s bear trend has built momentum, but there are clear skies until the September lows.