The US dollar index remains firmly in control as emerging market currencies continue to feel the heat. Trump has backed off from some of his trade comments, but the Greenback remains the power currency. The prospect of a global trade war may have diminished slightly, but the Chinese economy remains under intense scrutiny.
The dollar pairs are mixed through, with the AUD/USD rebounding off multi year support levels this morning.
The GBP/USD and EUR/USD are flat with a negative bias this morning though as the pairs look to extend the losing run.
The USD/CHF remains at the highs, as does the USD/CAD despite a recovery in oil price.
The yen pairs generally have a positive bias, as the USD/JPY nudges higher gain. The GBP/JPY is looking to reverse yesterday’s losses.
Gold continues to reverse though, with $1250 the next target.
Coming up today, we have Spanish flash CPI at 08.00.
Today is also day 1 of the EU economic summit.
US final GDP is at 13.30, released alongside unemployment claims.
MPC member Haldance speaks at 14.30.
FOMC member Bostic speaks at 17.00.
The Aussie dollar is performing relatively well this morning, but pressure remains on the pair. The Chinese economy has other problems to worry about beyond trade tariffs such as a weakening currency, debt levels and questionable economic data.
With Australia reliant on China for growth, there could be further downside from here.