The US dollar is weaker this morning after another solid showing yesterday amid confirmation that the Fed is not for turning.
The GBP/USD is slightly higher, but the damage from yesterday’s selling remains. UK retail sales fell more than expected, forcing the GBP/USD below 1.3050, while the EUR/GBP has risen on euro out-performance. The GBP/JPY is recovering, but has so far made back just a quarter of last night’s losses.
The 1.1450 level is holding for the EUR/USD after two days of heavy selling at the hands of a dominant US dollar.
The AUD/USD continues to out-perform, with moderate losses yesterday and a recovery above 0.7100.
The Canadian dollar is trickling lower again after two days of losses against the US Dollar. The USD/CAD is slipping, but Wednesday and Thursday’s gains look unthreatened. The USD/CHF is continuing its slow march towards the parity line, trading at 0.9965 this morning.
The yen pairs are back on the front foot after yesterday’s reversal. The USD/JPY slipped back yesterday, but has made back most of those losses this morning. The AUD/JPY is still out-performing, rising to test 80.00. The EUR/JPY and GBP/JPY suffered large losses yesterday, but are staging a recovery.
At 09.30, we have UK public sector net borrowing.
Following this at 13.30, we have Canadian CPI and retail sales.
FOMC member Bostic speaks at 17.00.
BOE governor Carney speaks at 17.10.
The Swiss franc is continuing to lose its allure as a safe haven, while the dollar remains the world’s reserve currency. As such, the USD/CHF is slowly but surely keeping its bullish bias.