This morning, the US dollar is falling off again, on the back of mixed US payroll data on Friday. Average earnings held firm while jobs and unemployment disappointed. This and ongoing uncertainty surrounding trade tariffs has heaped further trouble on the dollar.
Dollar pairs are mixed this morning, as the EUR/USD recovers from an opening gap lower. The GBP/USD is unchanged however, following Friday’s sizeable gains. The EUR/GBP gapped lower at the open, with the euro trying to recover from the ongoing pressure of ECB interest rate expectations..
By contrast, the NZD/USD is travelling well, leading the dollar pairs higher along with the AUD/USD.
The yen pairs have a positive bias, with the GBP/JPY extending last week’s gains. The USD/JPY is nudging higher, though gains are limited.
We have a quiet day ahead this morning, starting with UK Halifax HPI at 08.30.
At 15.30, we get BOC business outlook survey.
The British pound continues to hold its ground well, mainly as a result of the perceived threat of Brexit induced inflation. The economy continues to hold up better than previous expectations, though long term uncertainty continues with Brexit negotiations.
With the yen remaining soft, there could be further upside from here.