This morning, the US dollar is rebounding, despite yesterday’s Empire State Manufacturing coming in below estimates. Dollar pairs are off the pace, while the yen pairs rebound on dollar interest The EUR/USD is amongst the biggest fallers this morning, with the EUR/GBP dropping as the pound holds relatively steady.
Other dollar pairs are following suit, with the NZD/USD the worst performer so far and the AUD/USD pulling back from the highs.
The USD/CAD is rallying ahead of today’s BOC meeting where rates are expected to rise by 0.25% to 1.25%. This much is priced in so it will be the future direction of travel that sets the pace for today.
Yen pairs are positive, with the exception of the EUR/JPY which is lagging as money flows from the yen into the dollar.
Gold is also slipping back under dollar pressure.
Coming up today, we have European final CPI at 10.00.
MPC member Saunders speaks at 11.45.
At 14.15, we get US capacity utilisation rate and industrial production.
The day’s main event is the BOC rate statement and monetary policy report at 15.00. The press conference follows at 16.15.
FOMC member Mester speaks at 21.30.
The Aussie may be slipping back this morning, but the medium term trend still remains strong with the September highs remaining unchallenged.