The US dollar is continuing to set the pace, extending the rally that has been growing since September 11th. Yesterday’s stronger than expected ISM Manufacturing helped reaffirm the current trend.
Dollar pairs have been on the back foot since the middle of the month and this trend is continuing this morning with sell-offs across the board. The AUD/ USD, in particular, is struggling after this morning’s RBA rate statement.
The GBP/USD came in for some hefty selling yesterday as UK manufacturing fell below expectations. The pound is holding ground this morning though, with the EUR/GBP dipping.
The yen pairs are mixed, but the USD/JPY continues to shine, making further gains this morning.
Meanwhile, gold and silver continue to make steady losses.
Today we have Spanish Unemployment change at 08.00.
Following this, we get UK Construction PMI at 09.30.
FOMC Member Powell speaks at 13.30.
The AUD/USD has been on a losing streak for some time, but the NZD/USD has so far avoided the same excesses.
We are approaching a potential supporting support though and should this break, we could well see further downside from here.