This morning, the US dollar continues to trade on the back foot ahead of today’s US inflation data. The US dollar index is now set to fall for three straight sessions. US retail sales are set to fall by 0.2%.
This is helping the dollar pairs to rise again, led by the EUR/USD which is up 0.97% on the week. The euro’s out-performance continues to help lift the EUR/GBP as the pound lags.
The AUD/USD is performing better today, but the pair has been hit hard this month, down 2.27%. The AUD/JPY has fared worse than this though, as it trades down over 4% as the yen pairs continue to slide.
The USD/JPY itself is in free fall as the September lows are broken. This in turn is dragging other yen pairs lower. Aside from the AUD/JPY, the GBP/JPY continues to fall, challenging recent lows.
Gold has performed well these last two sessions though.
Coming up today, we have European Flash GDP at 10.00.
We get US CPI and retail sales at 13.30.
Crude oil inventories at 15.30.
The euro was hit hard by recent volatility and remains a little way off the highs. The dollar continues to struggle this week though, with the EUR/USD recover quicker than most.
The long term trend remains positive for the EUR/USD, making a HIGHER trade attractive.