The US dollar has lifted off the pace somewhat, though dollar pairs are mixed in their reaction. The AUD/USD is capitalising on this and building on yesterday’s gains. The GBP/USD and EUR/USD are subdued however, with the pound marking three days of gains against the dollar.
The USD/CHF is unchanged after rising sharply towards the highs yesterday. Meanwhile, the USD/CAD lost ground yesterday and is unchanged this morning as oil prices firm.
The USD/JPY is unchanged after reaching a high of 112.75 overnight.
Gold remains just above support around $1240, while silver also looks poised for another test of the lows after two attacks of $15.80 already in July.
Today, we have MPC member Cunliffe speaking at 12.00.
Preliminary US Consumer Sentiment is at 15.00.
Gold may have found support at $1240 recently, with this level stretching back to December. However, the dollar index remains strong, meaning the $1240 level could well be broken in the near term.