This morning, the US dollar is weaker after yesterday’s late session surprise attack by Trump on the EU as he starts another front in his global deal negotiations. The dollar is dropping for the third straight day this morning, giving dollar pairs the edge.
The AUD/USD is higher for the third straight day and testing the 0.7140 March highs. Westpac consumer sentiment showed encouraging signs this morning.
The GBP/USD is higher as the pair holds support around 1.3000. The mood music remains cautiously optimistic that at least the apocalypse will be kept at bay. The EUR/USD is lagging in the face of Trump’s trade attacks. The EUR/GBP is slipping lower for the first time in five sessions as the euro struggles.
The USD/CAD is holding ground however after repelling another attempt at support around 1.3300. The USD/CHF is also climbing and holding above 1.0000 as the Swissy is caught up in euro concerns.
The USD/JPY fell heavily yesterday, with the 111.00 level holding as potential support. There are small gains this morning though, as is the case with other yen pairs. The AUD/JPY remains rangebound but near the highs as 79.00 holds. The EUR/JPY took a hit yesterday, but the 125.00 held, with small buying this morning. The GBP/JPY is halting its downswing though, with a small gain for the first time in five sessions.
Today, we have UK GDP at 08.30.
The ECB meeting is at 11.45, with the press conference to follow at 12.30.
US CPI is at 12.30.
FOMC member Quarles speaks at 15.50.
At 18.00, we have the release of the meeting minutes from the last FOMC meeting.
The euro has been struggling to lift off the lows and last summer’s highs remain some way off. With Trump’s new attacks, there could be new vulnerabilities for the euro and a good way to play this might be a LOWER trade.