This morning, the US dollar index remains under pressure following Friday’s session which saw counter pressure from the euro and pound. The euro surged on hope of a breakthrough in German coalition talks. In addition, US retail sales dropped more than expected. The EUR/USD is now up 1.81% on the month, lagging the GBP/USD slightly which is up 1.85%.
The EUR/GBP remains rangebound, with a slight gain for the pair in the favour of the euro this morning.
The AUD/USD remains strong, with four solid days in a row including today’s out-performance. The AUD/USD remains the top performer on the month. The NZD/USD is higher and recovering from yesterday’s losses.
The USD/JPY remains on the back foot, breaching the November lows this morning. The other yen pairs remain subdued.
The USD/CAD is gapping lower this morning as dollar pressure intensifies and oil prices close in on $70.00.
US banks are closed today in honour of Martin Luther King day.
MPC member Tenreyro speaks at 18.15.
With the dollar index under pressure, you could take your pick on dollar pairs.
The Aussie is showing the most impressive momentum though, making the AUD/USD the more attractive bet.