This morning, the euro remains under pressure as Catalan separatists threaten to form human shields to block Spanish authorities attempts to take direct control of the region. The EUR/USD was unable to close yesterday’s opening gap lower yesterday, while the EUR/GBP remains on the back foot.
By contrast, the GBP/USD has managed to make gains for the last three days.
Dollar pairs are generally on the back foot as the US dollar makes back some of yesterday’s losses.
Yen pairs are making gains again after the USD/JPY reversed yesterday’s opening gap higher.
Today we have French Flash Manufacturing PMI at 08.00, released alongside flash services PMI. Equivalent German data follows at 08.30, with pan European data at 09.00.
Despite Monday’s opening gap higher, the USD/JPY bullish trend appears intact. With the US dollar still in demand and the yen potentially following an accommodative monetary policy, there could be further upside from here.