The US dollar is on the rise this morning as markets adjust to the impact of Trump’s Tariffs across the world.
The AUD/USD has been hit hardest, with a sharp reversal yesterday and follow on selling this morning. The AUD/JPY hit a barrier yesterday and sold off heavily.
The EUR/USD is slightly lower after hefty selling yesterday. The EUR/GBP sunk after German ZEW sentiment dropped more than expected. The pound is holding up relatively well and is unchanged after a firm display yesterday.
It’s not all one way traffic for the dollar though, as the USD/CHF and USD/CAD make gains.
The yen pairs have a positive bias with the USD/JPY making gains in the face of dollar strength. The GBP/JPY is out performing.
This morning, we have ECB president Draghi speaking at 08.00.
US PPI is at 13.30.
The BOC monetary policy statement and overnight rate is at 15.00. The press conference follows at 16.15.
US crude oil inventories are at 15.30.
BOE governor Carney is speaking at 16.35.
FOMC members Bostic and Williams speak at 17.30 and 21.30 respectively.
The pound has shown impressive resilience, especially against the yen. Sterling is riding the Brexit uncertainty well and there could be further upside from here.