The US dollar is on the back foot this morning ahead of this evening’s FOMC meeting. Markets are expecting no change, but traders will be alert for any hints of future direction.
The AUD/USD is one of the top performers, rallying following the release of inflation data that came in above estimates. The EUR/USD is also on the rise, making gains for the fourth straight day.
The pound came in for heavy selling around yesterday’s Brexit amendment vote, with the GBP/USD slumping below the 1.3100 level. There are small gains this morning. The pound also made significant losses against the euro, rising to hit the 0.8750 level, with a small reversal this morning.
The USD/CAD is on the back foot as oil prices stabilise. The USD/CHF still has a positive bias though, sitting just below the 0.9950 level.
The yen pairs are on the back foot as investors shun the dollar and move into the yen. The USD/JPY has reversed the week’s gains and is heading towards the 109.00 level. The GBP/JPY is making further losses and is heading for the 143.00 level. Even the EUR/JPY is pulling back slightly, testing the 125.00 support line.
Gold continues to imply risk aversion, with fresh highs for the year.
Today at 09.30, we have UK net lending for individuals.
US ADP non farm employment change is at 13.15.
The FOMC statement is at 19.00, with the press conference.
The EUR/CHF is showing positive intent, helped by the sudden weakness seen in the Swiss franc.