The dollar index and other risk-free assets are on the back foot this morning as traders bet on a positive outcome for trade talks following Trumps offer to extend the latest round of deal making.
The dollar index gapped lower, helping the dollar pairs to gap higher as a consequence. The AUD/USD has gapped above 0.7150. The EUR/USD is slightly higher, and heading for a test of 1.1350.
The GBP/USD is showing the most impressive gains, with a gap that brings the pair above 1.3050 after dropping below 1.3000 in volatile trading on Friday. The EUR/GBP is following up Friday’s losses that saw the pair drop below 0.8700.
While the headlines focused on Sterling as it briefly dropped below 1.3000, the euro came under further pressure on Friday, closing lower and failing to push through 1.1350.
The USD/JPY remains subdued and rangebound beneath resistance of 111.00 as the dollar and yen largely cancel each other out. The EUR/JPY, GBP/JPY and AUD/JPY all gapped higher at the open, but are struggling to hold those gains.
BOE Governor Carney speaks at 10.00.
FOMC member Clarida speaks at 16.00.
Silver has been tracking gold higher which could point to higher levels for both precious metals.