This morning, the US dollar is reversing lower following a negative reaction to Trump’s plan to impose a 25% tariff on steel imports. The dollar pairs are generally positive, but there are some exceptions as the EUR/USD trades lower and AUD/USD remains subdued.
The GBP/USD is on the rise after selling yesterday and significant under performance compared to the euro. The EUR/GBP rose to the top of the trading range.
The NZD/USD is making further gains after putting in one of the strongest performance yesterday.
Dollar outflows are biggest into the Swiss Franc and Japanese yen. The latter has extended its recent winning run.
The EUR/JPY has broken the week’s lows. All other yen pairs are following suit.
Today, we have Spanish unemployment change at 08.00.
UK construction PMI is at 09.30.
BOE governor Carney is due to speak at 10.00
UK Prime Minister Theresa May is due to speak on the EU relationship at some point.
Canadian GDP is out at 13.30
At 15.00, we get revised UoM sentiment.
It’s hard to look beyond the yen pairs at the moment, with the EUR/JPY a prime candidate as Europe prepares a response to Trump’s tariff plans.