The dollar index is surging higher on the back of Trump’s early morning State of the Union address which revealed a new summit with North Korea’s Kim.
Dollar pairs are firmly on the back foot, with the selling led by the Australian dollar. The AUD/USD is seeing its biggest fall outside of the 2019 opening plunge after RBA governor Lowe opened up the possibility of a rate cut. The AUD/USD is struggling, down 1.27%, but the AUD/JPY is falling even further, down 1.46%.
Elsewhere, the EUR/USD is selling off for the third straight day and now sites below support around 1.1400. The pound plunged yesterday after UK Services PMI dropped to its lowest level since August 2016. The EUR/GBP rose above 0.8800 yesterday, but is slipping back this morning.
The Canadian dollar is struggling, with the USD/CAD rising off support around 1.3100.
Meanwhile the USD/CHF smashed through the 1.0000 line yesterday before pulling back and is sitting just below this level now.
Yen pairs are on the back foot, with the USD/JPY failing to break 110.00 and losing ground. The GBP/JPY is extending yesterday’s losses, while the EUR/JPY is lower for the second straight day.
FOMC member Quarles speaks at 23.05.
Gold is holding up well despite overall dollar strength. Despite recent confidence, there are plenty of reasons to hold a safety net at the moment. As such, gold is likely to provide sustained interest over coming weeks.