The dollar index is rallying on hopes for a successful round of trade talks between the US and China. The dollar index is nudging back to the neutral line after gapping lower at the open.
Dollar pairs are mixed with a positive bias following this morning’s dollar gap lower. The AUD/USD gapped higher at the open, arresting last week’s heavy slide.
The EUR/USD is attempting to climb, with gains after five days of losses. The GBP/USD is unchanged as the pound at least holds ground in the face of continued Brexit uncertainty. The EUR/GBP is making slight gains as the 0.8750 support level holds.
After posting strong employment growth levels on Friday, the USD/CAD dropped on Friday. There is a recovery rally this morning though as the USD/CAD gaps higher at the open.
Meanwhile, the USD/CHF is fighting just below the parity line after closing bang on 1.0000 Friday.
Today, we have UK GDP at 09.30, released alongside manufacturing production and preliminary GDP. Preliminary business investment is also released at the same time.
US FOMC member Bowman speaks at 16.15.
The Swiss franc and the US dollar are hovering around the parity line, a level that has acted as a magnet for some time.
There could be further rangebound trading to come for the pair and a good way to play this is an In/OUT trade predicting that the USD/CHF closes between a high of 1.0050 and a low of 0.9950 in 14 days for a potential return of 107%.