This morning, the euro is holding at the highs after surging again yesterday on the back of comments from ECB member Hansson. These comments appeared to echo previous ECB which point to the ending of asset purchases in the final quarter of the year.
The pound lagged the euro slightly yesterday, helping the EUR/GBP to make gains, but the GBP/USD itself still had a healthy session. The GBP/USD is now at its highest point since the Brexit shock sell-off. MPC member Tenreyro implied that productivity risks are skewed to the upside.
The Australian dollar remains the power currency this morning though, outstretching others this week to rise 0.75% against the dollar. Today, the AUD/JPY is the top performer, up 0.32%.
The NZD/USD is subdued this morning, after tracking the Aussie higher through this rally.
The yen pairs have a positive bias this morning, with even the USD/JPY tracking higher.
Gold is tracking back this morning, but the rally remains on track to hit the September highs in the $1350 region.
Coming up today, we have UK CPI at 09.30, with PPI and RPI at the same time.
At 13.30, we get the US Empire State Manufacturing Index.
SNB chairman Jordan speaks at 17.00.
The USD/CAD is tracking lower on general dollar weakness, with this move being supported by the solid rise in oil prices.
With more downside on the cards, a good way to play this situation is a ONE TOUCH trade predicting that the USD/CAD will touch 1.2200 at some point within the next 14 days for a potential return of 159%.