The US dollar is recovering from an opening gap lower which initially boosted dollar pairs this morning before they fell back as dollar buyers stepped in. The dollar index is now unchanged for the morning, holding Friday’s NFP gains which came in at much higher than expected.
The USD/JPY is building on Thursday’s gains and recovering from a slight opening gap lower.
The GBP/USD remains strong after gapping higher this morning to effectively bring the pair back to the highs of Thursday’s close. The pair withheld from heavy selling on the back of Friday’s Non Farm employment figures. The GBP/JPY has made an opening gap higher which is holding near Friday’s highs as the pound remains one of the top performers this month. The EUR/GBP is recovering the morning’s gap lower which kept the pressure on the euro and momentum behind the pound.
The EUR/USD fell back Friday in volatile trading with this morning’s action keeping the status quo so far. The EUR/JPY is bullish, making it a potential third straight day of gains.
The AUD/USD is following other pairs in recovering from the opening gap lower. The AUD/JPY is holding last week’s late gains however.
The USD/CHF is holding above the parity line after volatility on Friday. The USD/CAD is also maintaining a bullish bias with oil prices struggling.
Today, we have UK services PMI at 09.30.
BOC governor Poloz speaks at 13.10.
At 15.00, we have US ISM non-manufacturing PMI
Trade tensions are thawing, but it may take some time for the Australian economy to evidence that it can continue to rally despite pressure on the Chinese economy.