The dollar index remains soft after US CPI came in below estimates and European central banks kept rate forecasts on track.
The AUD/USD is higher again, extending the bounce off the 0.7100 level. The EUR/USD and GBP/USD are holding firm after yesterday’s rally, with the latter lagging slightly following Mark Carney’s dire warnings of a 35% crash in house prices in the event of a hard Brexit.
The USD/CAD has continued its reversal, trading below the 1.3000 level, while the USD/CHF has dropped for four straight days to test the 0.9650 level once again.
Yen pairs are generally on the back foot as the dollar loses out to the yen, though the AUD/JPY is managing to extend gains.
Today, we have the BOE’s Mark Carney Speaking at 11.00.
US core retail sales data is at 13.30.
US preliminary UoM consumer sentiment is at 15.00
The USD/CHF balance remains firmly in favour of the Swiss franc, with further downside on the cards for the pair as the dollar weakens further.