The US dollar is muted this morning as traders eye Wednesday’s FOMC meeting where rates are expected to increase by 0.25%. In addition, Tuesday China’s Central Economic Work Conference will be watched closely for signs of further economic stimulus. The dollar index is unchanged, but there is still room for early trends.
The USD/JPY is up slightly, with the dollar rising a small amount against the yen.
The AUD/USD is underperforming, making further losses after gapping lower. Last week ended on a low note, with this morning’s losses making the AUD/USD drop further. The AUD/JPY is unchanged after heavy losses on Friday.
The EUR/USD is showing some relative strength following Friday’s losses, with the 1.1300 level holding firm for now. The EUR/JPY is also on the rise, making small gains to keep the EUR/JPY within its tight range from mid-November. The EUR/GBP is also on the rise, with the pound lagging so far this morning.
The GBP/JPY is positive, though the medium term trend remains negative. The GBP/USD is unchanged though, putting the pair in a vulnerable position for the week ahead.
The USD/CHF is unchanged so far, with the US dollar maintaining last week’s relative strength.
There are only minor economic items released today, with US Empire State Manufacturing Index a highlight at 13:30.
While fears increase for the prospect of a hard Brexit, it is worth noting that the GBP/USD remains above the post referendum lows around 1.2000.