This morning, markets are choppy on growing concerns that are limiting risk appetite. Concerns mount over emerging currencies, China and the Italian economy.
The USD/JPY continues to fall from the highs around 114.50, with support at 113.00 the latest test. The EUR/JPY is following a similar path, with steady selling from 133.00 – The 130.00 level is holding for now. The GBP/JPY sold off yesterday like other yen pairs, but from a much stronger base. The AUD/JPY is out performing through, with the 80.00 level holding.
The AUD/USD is the exception amongst dollar pairs, rallying for the second day in a row.
The GBP/USD is slightly higher and holding up well on Brexit hopes, while the EUR/USD continues to struggle on Italy concerns. The EUR/GBP’s trend remains firmly lower, hitting its lowest level since June.
The USD/CHF’s power trend remains higher, pausing just below 0.9950. The USD/CAD’s uptrend remains firmly on track despite a rejection of the 1.3000 level yesterday.
Today we have MPC Member Broadbent speaking at 15.35.
The pound is gathering some genuine Brexit momentum right now, while the euro faces increasing concerns over the state of Italian banks and bond market.
The EUR/GBP has sold off heavily in the past few weeks, but there could be room for further selling if bond concerns intensify.