This morning markets remain in recovery mode after staging a dramatic recovery yesterday. The dollar index remains on the back foot after poor US data yesterday, with GDP and ADP jobs data dropping below expectations. Meanwhile, the euro recovered as fears of Italy receded.
The EUR/USD overhauled Tuesday’s losses, with small gains this morning. The EUR/GBP jumped higher, recovering any losses on the week, though is retreating somewhat this morning. Other euro pairs including the EUR/CHF and EUR/JPY are following the same trend.
The pound also continues to recover, with moderate gains for the GBP/USD, lifting above the 1.3300 level.
The Aussie is under-performing this morning, with the AUD/JPY down 0.38%. The AUD/USD is off 0.22%.
The USD/CAD is staging some of the biggest momentum, with the Canadian dollar capitalising on the recovery in oil prices and retreating dollar.
UK net lending to individuals is at 09.30.
At 10.00, we have CPI flash estimate.
Canadian GDP is at 13.30.
US Core PCE, personal spending and unemployment claims are at 13.30.
US Chicago PMI is at 14.45.
At 16.00, we have US crude oil inventories.
FOMC member Bostic speaks at 17.45, with Bainard speaks at 18.00.
The euro is recovering this morning, but doubts still remains about long term stability. Meanwhile, the Canadian dollar is recovering as oil prices rebound.