The US dollar is recovering after Friday’s sell off which came about despite better than expected US GDP numbers.
Dollar pairs are on the back foot, but so far with only minor losses compared to Friday’s substantial reversal. The euro is lower after the EUR/USD bounced off the 1.1350 level. By contrast, the GBP/USD is slightly higher after the 1.2800 level held on Friday. The EUR/GBP has gapped lower at the open after just about failing to touch the 0.8900 level Friday.
The AUD/USD saw some of the highest volatility on Friday, breaking through the 0.7050 support line at one point, but recovering to close higher, with no change this morning.
The USD/CAD is higher again for the third straight day, holding above the 1.3100 level.
The USD/CHF reversed Friday, but has gapped higher slightly this morning after Swissy safe haven allure slipped.
The yen pairs are making small gains this morning, after the USD/JPY saw some of the biggest losses on Friday, breaking through the former 112.00 support line. The EUR/JPY’s downtrend remains largely intact, with the GBP/JPY following suit despite small gains this morning.
At 09.30, we have UK net lending to individuals.
This is followed by US core PCE price index at 12.30 alongside personal spending.
The AUD/USD has dropped by nearly 13% since the start of the year and with the dollar remaining strong and the Aussie suffering from China worries, there could be further downside from here.