This morning, the dollar is rebounding after yesterday’s reversal, putting renewed pressure on the dollar pairs that were unable to capitalise on yesterday’s benign conditions. One such pair is the NZD/USD which barely saw an upwards move yesterday.
Other pairs such as the EUR/USD enjoyed bigger gains yesterday, so have further to go with today’s reversal. The GBP/USD had a positive session, but lagged other dollar pairs after GDP increased less than expected.
The EUR/GBP rose for the second day in a row yesterday, but is reversing steadily this morning as Brexit progress waxes and wanes.
The yen pairs are mixed after the dollar took its foot off the gas yesterday. The AUD/JPY and EUR/JPY are extending yesterday’s losses. The USD/JPY is rebounding however as the dollar finds support.
Coming up today, we have European final CPI at 10.00.
At 12.00, we have MPC member Ramsden speaking.
At 13.30, we have Canadian inflation data with CPI.
FOMC members Dudley, Mester and Williams speak at 15.15, 18.30 and 20.40 respectively.
Despite an apparent dominant position in Brexit negotiations, the EUR/JPY continues to struggle as the domestic economy fails to set alight.
Further downside could be on the cards from here.