The US dollar is recovering after US stock markets retreated last night. The US dollar index is higher this morning, forcing dollar pairs on the back foot.
The biggest loser is the AUD/USD which has closed Monday’s opening gap with heavy selling this morning following a big GDP miss. The AUD/JPY is following suit with a more spectacular retreat.
The EUR/USD is suffering only moderate selling in contrast to the GBP/USD which is on a five day losing run and below the 1.2700 marker. The EUR/GBP is on the rise after a small reversal yesterday.
The USD/CAD has fully recovered Monday’s gap lower and is heading back to the highs, while the USD/CHF is on the rise and trading just below the parity line.
Yen pairs have a positive bias as money flows from the yen into the dollar. There was heavy selling on the USD/JPY yesterday, but around a third of this move has been recovered.
The GBP/JPY is making a small recovery after heavy selling yesterday, the EUR/JPY is following suit and keeping just above the highs.
ECB President Draghi speaks at 08.30.
UK Services PMI are at 09.30.
At 15.00, we have the BOC rate statement.
The USD/JPY is recovering this morning after heavy selling yesterday. The long term trend remains positive though and this morning’s moves could be a chance to make bullish bets higher.