The US dollar index is on the rise as traders err on the side of caution regarding US-China trade talks. Another round of talks have been announced, but the fact that there has not been a resolution yet has pushed some traders back into their shell.
Dollar pairs are on the back foot, with the AUD/USD making back to back losses and erasing most of Friday’s gains.
The EUR/USD is also slipping, reversing yesterday’s gains to test 1.3000 once again. The GBP/USD is also on the back foot and looking to test yesterday’s opening gap higher above 1.2900. The EUR/GBP is unchanged, holding just above 0.8750.
The USD/CAD is on the rise, closing yesterday’s opening gap lower. The 1.3300 level remains a key challenge.
The USD/CHF challenged the 1.2500 level yesterday, but has recovered to challenge 1.0050 this morning.
The USD/JPY is also making gains, but yen pairs are generally on the back foot in line with their dollar counterparts. The AUD/JPY is making back to back losses, while the GBP/JPY sits just above yesterday’s lows. The EUR/JPY is also slipping.
Today, we have UK average earnings and the unemployment rate at 09.30.
German ZEW economic sentiment is at 10.00.
Gold is slipping back slightly today, but the longer term trend remains strong, above $1320.
With global risks simmering at best, there could be further upside from here for the precious metal.