This morning, the US dollar is on the charge as traders react to the passing of Trump’s tax bill. This comes following heavy losses on Friday on concerns over Flynn’s testimony over Trump. The dollar index is higher, forcing dollar pairs lower.
The biggest losses have been seen on the Swiss Franc, with the USD/CHF up 0.80%. This comes as traders switch out of safe haven assets.
On a similar trade, the USD/JPY is up 0.64% as traders switch out of the yen and into the dollar.
The euro is recovering after gapping lower at the open against the pound, with the EUR/GBP rallying up to Friday’s close. The EUR/USD remains lower however after gapping lower and is currently trading at the day’s lows.
The GBP/USD is sliding lower and is now close to erasing all of Thursday’s gains.
The USD/CAD is slightly higher after suffering heavy losses on Friday as the weak US dollar met a resurgent Canadian dollar.
Coming up today, we have Spanish unemployment change at 08.00.
At 09.30, we have UK Construction PMI.
US factory orders follow at 15.00.
The AUD/USD is sliding lower again, cementing the general slump in the pair seen since the start of September.
Now the tax bill has passed, we could see further downside for dollar pairs.