This morning, the US dollar continues to recover after a slew of positive data on Friday. Building permits, housing starts, import prices and preliminary UoM consumer sentiment all came in above expectations. The dollar index lifted from near three year lows on Friday and is pushing higher again this morning albeit with more moderate gains.
The yen pairs are the biggest movers, as the strong dollar puts pressure on the yen, pushing the yen pairs higher. The AUD/JPY is the strongest performer, up 0.37%. The GBP/JPY is lagging however.
The EUR/GBP is on the rise again following last week’s recovery in sterling which saw two days of losses.
The dollar pairs are showing moderate losses which extend Friday sell-off. The EUR/USD is holding up relatively well, while the AUD/USD is barely unchanged. The GBP/USD is extending losses however.
Gold has continued to slip from the highs following Friday’s session.
It is a US Bank Holiday today in honour of President’s Day.
BOE governor Carney speaks at 18.45.
The EUR/GBP has fallen into a tight range since the end of last year, with the pair slipping from the 0.8900 resistance levels.
The pair is likely to wax and wane as Brexit negotiations go through various attacks and ripostes from both sides.