The US dollar index is mixed after yesterday’s surprise plunge in US retail sales that saw activity drop to 2009 levels. The US dollar gave ground in many areas as a result, but not all.
There were gains for the AUD/USD, but these gains have been cancelled out by early losses this morning.
The EUR/USD made outsized gains, bouncing off the support level at 1.1250, with a small reversal this morning so far.
The GBP/USD has been a mirror of the EUR/USD, with losses yesterday following Theresa May’s latest parliamentary defeat. There are small gains this morning though, as the 1.2800 level holds. As a result, the EUR/GBP rallied to its highest levels for February, with a minor reversal this morning.
The USD/CHF hit reverse gear to trade just above 1.0050 this morning. By contrast the USD/CAD has continued its up trend, making gains for its third straight day.
Yen pairs are on the back foot, with the USD/JPY following up on yesterday’s losses. The GBP/JPY also dropped through former support at 142.00. The EUR/JPY is down for the third day in a row this morning, though remains largely rangebound. The AUD/JPY is also falling, but holding within the 2019 range.
Today, we have UK retail sales at 09.30.
US Preliminary UoM Consumer Sentiment is at 15.00.
The dollar index has been mixed of late, with the EUR/ USD dropped to test the 2019 lows yesterday.
The economic landscape is murky to put in mildly, but this may be enough to put bets behind the US dollar and against the euro, especially with Germany posting slugging growth.