This morning, the dollar index is on the back foot after reaching 2018 highs following a bullish fed meeting. The FOMC gave a cautious but positive assessment of the US economy, while ADP non-farm employment change came in slightly above estimates.
The dollar pairs are climbing this morning as the pressure valve of dollar strength is released following yesterday’s lows. The GBP/USD held up well yesterday in the face of general dollar strength, but with moderate gains this morning. UK Construction PMI came in above estimates yesterday.
The EUR/USD under-performed yesterday, but is pushing higher this morning. The EUR/GBP is rising and making up for yesterday’s losses.
The AUD/USD out-performed yesterday, making minor gains with a strong performance this morning.
The USD/CHF briefly nipped above parity yesterday, before peeling back this morning.
Today we have UK services PMI at 09.30.
European CPI flash estimate follows at 10.00.
At 13.30, we have Canadian trade balance.
Following this, we get US preliminary non farm productivity, unit labor costs and unemployment claims.
US ISM non manufacturing PMI is at 15.00.
SNB chairman Jordan speaks at 17.00.
The Aussie has over-performed over the last 24 hours, but the AUD/USD’s medium term trend remains negative. Given last night’s data and FOMC conclusions, there could be further downside from here.