The US dollar index remains on the back foot this morning as tech stocks continue their sell off. Amazon in particular has been hit hard, with founder Jeff Bezos losing hundreds of billions since Trump took aim via his Twitter account.
The dollar pairs have a positive bias, with the AUD/USD leading the charge this morning and lifting off the 2018 lows. The RBA elected to keep interest rates on hold in the early hours of this morning. The NZD/USD is following suit, with the Kiwi holding well above the 2018 highs.
The euro is recovering somewhat, following yesterday’s sell-off. The EUR/USD sold off, while the GBP/USD out-performed making gains and helping the EUR/GBP to losses yesterday. The GBP/USD is making follow-on gains this morning.
The yen pairs are making gains, but generally remain under pressure not far above recent lows. The USD/JPY is on the rise after three straight days of losses. Meanwhile, the AUD/JPY is making gains, along with EUR/JPY and the GBP/JPY, but the pairs remain within half a session of the 2018 lows.
Today we have German retail sales at 07.00.
Following this, we have a number of lower tier European economic items including German final manufacturing PMI at 09.00.
UK manufacturing PMI is at 09.30.
FOMC member Brainard speaks at 21.30.
The pound has taken the upper hand against the euro over the last month, even as Brexit negotiations remain advantage Eurozone.
However, the EUR/GBP has followed a fairly consistent pattern of circular highs and lows over the last six months. The next month could therefore be higher.