The US Dollar index is on the rise and building on yesterday’s GDP inspired gains. Traders are betting on further US growth despite the potential risks exposed by US-North Korea talks breaking down.
Dollar pairs are on the back foot, with the exception of the EUR/USD which is holding its ground well after a mixed session yesterday. The GBP/USD is set for back to back losses after pulling back from the 1.3300 level yesterday. The EUR/GBP is making gains after bouncing off the 0.8550 level yesterday.
The AUD/USD continues to struggle though on hints of a slowdown coming from China. The Aussie has dropped for the last three days against the dollar.
The Canadian dollar is performing relatively well though, with the USD/CAD dropping on oil price stability. The USD/CHF is making gains after a volatile session that saw the pair drop below 0.9950 at one point.
Yen pairs are on the front foot though, led by the USD/JPY which is rallying for the third straight day and pushing for the 112.00 level. The GBP/JPY continues to excel, rallying to the 148.00 level this morning. The EUR/JPY is also higher for third straight day. 127.00 will be a key test.
Gold continued to pull back from the highs, falling for its third straight day below $1320.
Today, we have UK Manufacturing at 09.30, released at the same time as net lending to individuals.
European CPI flash estimate is at 10.00.
Canadian GDP is at 13.30.
Also at 13.30, we have US core PCE price index and personal spending.
At 15.00, we have USM manufacturing PMI, released alongside revised UoM Consumer Sentiment.
Momentum is behind the US dollar index right now, while the yen is backing off. This is putting the USD/JPY on an upwards trajectory that is worth tracking.