The euro is recovering and maintaining some stability despite ongoing fears of trouble spreading from Turkey and the aftershocks from Friday’s data that have sparked Eurozone recession fears.
The EUR/USD is trading above 1.1300 after opening below these levels this morning. There is still some way to go to make back the losses of Thursday and Friday though. The EUR/GBP is also pushing higher after a Brexit relief move in favour of the pound. The EUR/JPY is holding above the 124.00 level this morning and following Friday’s sell-off test.
The dollar index has gapped higher slightly at the open, putting pressure on other dollar pairs. The GBP/USD is on the back foot, dipping below Friday’s close above 1.3200. The AUD/USD is posting small gains after two days of losses.
The USD/CAD is slipping back after pushing to test the 1.3450 level early this morning. Meanwhile, the USD/CHF continues to recover against the Swiss franc, posting gains after gapping higher to test the 1.000 level.
The USD/JPY has gapped higher at the open to test the 110.00 level as support. The GBP/JPY is lower for the fourth straight day. The AUD/JPY is holding the 78.00 level after gapping below on Friday.
Gold is working its way higher again, and is testing the $1320 for the second time in a week.
Today, we have US FOMC Member Evans speaking at 06.00.
German Ifo Business Climate is at 09.00.
Despite last week’s extension, Brexit plans are still very much up in the air. There are still considerable downside risks to exploit over coming weeks.