This morning, the US dollar has continued to recover, adding to yesterday’s gains. The gains come following strong US data yesterday, with manufacturing sales, housing starts and industrial production coming in above expectations.
The dollar pairs have been on the back foot, though are making small gains this morning. The pound in particular reversed, with the GBP/USD slipping from its 2018 highs. The EUR/GBP recovered Monday’s losses as the EUR/USD held its ground relatively.
The yen pairs are on the rise this morning as the yen gives way to the dollar in the global exchanges. The USD/JPY remains range bound, but the GBP/JPY has recovered yesterday’s losses, while the EUR/JPY builds some fresh momentum.
The USD/CHF surged yesterday, keeping the pair’s strong momentum up.
Gold has continued to pull back – as precious metals give way to the strong dollar.
Today, we have a stern test for the pound’s recent rally, starting with UK CPI, PPI and RPI at 09.30.
European final CPI is at 10.00.
Canada comes under focus at 15.00, with the BOC monetary policy report and rate statement. The BOC press conference follows at 16.15.
US crude oil inventories are at 15.30.
FOMC member Dudley speaks at 20.15, with Quarles speaking at 21.15.
The GBP/JPY has made an impressive recovery this morning, hinting at the strength of the underlying momentum. There could be further momentum today with UK inflation due at 09.30.