The dollar index is recovering this morning after a poor week that compounded 2018’s weakness. We have an extremely busy week ahead with Trump’s state of the union address, Non Farm Payrolls and much more.
Most dollar pairs are slipping back, including the AUD/USD which remains one of the top performers for the month after a surge on Friday. The NZD/USD is lower in sympathy.
The pound is lower again after volatile end to the week brought on by renewed Brexit concerns. The Tory party appear to be at odds again following months of apparent Brexit harmony and progress.
The EUR/GBP is making gains this morning and looks set for its third day of gains as the euro finds its feet again. The EUR/USD is lower this morning, but is showing relative strength.
Yen pairs are mixed this morning, with the USD/JPY making solid gains. The GBP/JPY and EUR/JPY are higher, but the AUD/JPY is lagging.
Coming up today, we have US Personal Spending and Core PCE Price Index at 13.30.
It is potentially an extremely volatile week ahead for the US dollar and by consequence the EUR/USD. The general trend still remains higher though, with further upside on the cards from here.