This morning, the US dollar is back on the rise as investors weigh up the prospect of higher inflation fuelling rate rises. The US dollar index is rising from what appears to be short term support.
The dollar pairs are mixed, with the AUD/USD and NZD/USD making gains while the EUR/USD and GBP/USD slip back.
The EUR/GBP balance is tipping towards the euro after four days of volatile trading that has pressured the euro.
The USD/JPY is making solid gains, almost making good yesterday’s losses, though the pair remains within touching distance of recent lows. The GBP/JPY has continued its steady climb, while the EUR/JPY is recovering from yesterday’s losses.
This morning, we have the UK annual budget release at 11.30.
This is followed by US CPI at 12.30.
Canadian BOC governor Poloz speaks at 14.15.
Assistant RBA governor Kent speaks at 22.10.
Gold is continuing its long slow drip from the highs, with the precious metal under pressure with the dollar recovering.