While stock markets have experienced volatility of late, in part due to trade tariff fears, currencies have taken more of a wait and see approach. The dollar appears to be rewarding the patience this morning as it makes gains on reports that the White House will be more flexible than previously thought on US-China tariff negotiations.
The dollar pairs are generally lower, with the AUD/USD and NZD/USD reversing the majority of yesterday’s gains.
The EUR/USD and GBP/USD remain rangebound, with moderate losses on both pairs. The EUR/GBP has stabilised, with the pair making small gains in favour of the euro this morning.
The Canadian dollar is reversing some of its recent NAFTA inspired gains, with the USD/CAD slipping lower for the first time in a few sessions.
The yen pairs are lifting off the lows, making gains for the third day in a row.
Today, we have UK services PMI at 09.30.
Canadian trade balance is at 13.30.
Also at 13.30, we have US unemployment claims.
At 18.00, we have FOMC member Bostic speaking.
Despite US dollar weakness in recent weeks, the USD/CHF has made steady gains. As the dollar turns this morning, this could accelerate recent gains.