The euro is struggling this morning after Italian election results pointed to no overall majority, but with a clear swing away from mainstream parties. Most dollar pairs are lower this morning, but the EUR/USD is showing relative weakness. The EUR/GBP has reversed from the highs this morning as investors fret over a surge of populism across the continent.
The other dollar pairs are faring only slightly better though, with the AUD/USD and NZD/USD extending last week’s losses. The GBP/USD is out-performing though, making only slight losses. The USD/CAD is now back up to the late 2018 highs.
The yen pairs are continuing last week’s losses, with the GBP/JPY out-performing only to the extent of making these losses minimal. The AUD/JPY is extending losses, while the EUR/JPY continues to look vulnerable.
This morning we have s slew of minor European data points.
At 09.30, we have UK services PMI.
US ISM non-manufacturing PMI is at 15.00.
FOMC member Quarles speaks at 18.15.
The yen pairs have slumped of late as the yen rides a wave of risk aversion in currency markets.
With Trump’s tariff threat potentially impacting raw commodity prices as well, there could be more pressure on the AUD/JPY in coming weeks.