The dollar index remains weak as traders weigh up Trumps latest attack on the Fed ahead of a likely 0.25% rate hike this week. The dollar is down for the second day this week, helping the dollar pairs to lift higher.
The AUD/USD is recovering, with the 0.7170 level acting as support.
The GBP/USD is lifting for the second straight day, though Friday’s losses are still to be overcome. By contrast, the EUR/USD is on the back foot, with the EUR/GBP falling back from the 0.9000 level.
The USD/CAD is pulling back from the highs as the Canadian dollar recovers some ground from the recent bull run.
The USD/CHF is rising slightly though as traders shun the need for the Swissy’s safe haven.
Yen pairs are on the back foot, with the USD/JPY falling for the third day in a row to test support at 112.50.
The EUR/JPY is down for the third day in a row following on from Friday’s significant loss. The GBP/JPY is struggling and maintaining its recent bear run. Meanwhile, the AUD/JPY is poised for a test of support at 81.00.
At 09.00, we have German Ifo business climate.
US building permits and housing starts are at 13.30.
The GBP/JPY remains weak and with current demand for the yen, there could be further downside from here.
PM May is facing a no confidence vote, while Brexit uncertainty plagues the British economy.