This morning, the dollar index is on the back foot again, ahead of key retail sales data later today.
The dollar pairs are mixed, with the AUD/USD posting a second day of small back to back gains – This comes after better than expected employment change data. The EUR/USD is unchanged, while the GBP/USD posting small gains to recover yesterday’s minor losses.
The EUR/GBP is posting small losses, following yesterday’s gains that put the pair above resistance at 0.8650. The EUR/ CHF is also pulling back after smashing through the 1.1400 level yesterday.
The USD/CAD is unchanged after bouncing firmly off support at 1.3300 yesterday. The USD/CHF is nipping back after another strong session yesterday that pushed the pair through the 1.0100 level.
Yen pairs have a negative bias, with the USD/JPY failing to push through the 112.00 level. The AUD/JPY is unchanged, while the GBP/JPY is trading just below support at 146.00.
Gold continues to struggle, slipping lower for the sixth straight day.
Today, we have a slew of European services PMI and manufacturing PMI data. We start with French data at 07.15, German data is at 07.30, with German data at 08.00.
UK retail sales are at 08.30, with BOE credit conditions survey at 08.30.
US core retail sales and Philly Fed Manufacturing Index are at 12.30.
Core Canadian retail sales are also at 12.30.
The Aussie economy continues to show resilience, with the AUD/USD pushing higher for the second straight day. The US dollar is treading water, while the Chinese economy continues to grow.