The dollar index is on the back foot as global risk appetite increases. The Greenback has reversed all of Friday’s gains, backing up Monday’s losses.
The biggest beneficiary has been the NZD/USD which has jumped over 1.5% as the RBZN projected that they would keep rates on hold through 2020. The neighbouring Australian dollar has also benefited, making follow up gains this morning, bidding above 0.7100 this morning.
The GBP/USD building back to back gains after Friday’s heavy selling on Friday. The EUR/USD is lagging however and is unchanged following solid gains yesterday that wiped out all of Friday’s selling pressure. As a result, the EUR/GBP is on the back foot, erasing most of yesterday’s gains.
The USD/CHF is unchanged so far after two days of gains in favour of the US dollar. The 1.0050 level is holding for now. The EUR/CHF is also on the back foot after making big gains yesterday.
The USD/CAD is on the back foot for the second straight day, fuelled by the general US dollar decline.
The USD/JPY is climbing for the fourth straight day, fuelled by traders shunning the safe haven yen. Other yen pairs including the GBP/JPY, EUR/JPY and AUD/JPY are also making gains.
Today we have UK CPI, RPI and PPI at 09.30.
US CPI, building permits and unit labor cost index are at 13.30.
FOMC member Harker speaks at 17.00.
The AUD/JPY has continued to recover from the opening flash crash lower and there could be further upside from here.