The euro remains subdued this morning after heavy selling yesterday. The ECB maintained a positive economic outlook, but expressed on concerns over inflation increasing below target. The EUR/GBP slumped yesterday, with the EUR/USD reversing half of Wednesday’s gains.
With the exception of the euro, dollar pairs are performing well again this morning. The dollar index is set for its third loss in a row. The GBP/USD has a positive edge, while the AUD/USD has risen to its highest levels since the start of November.
The NZD/USD is the top performer this morning though, rallying 0.5% and reversing yesterday’s losses.
The yen pairs remain on the back foot, with the USD/JPY and EUR/JPY extending yesterday’s losses. The AUD/JPY is holding at the highs however.
MPC member Haldane speaks at 13.15.
We have Canadian manufacturing sales at 13.30, with US Empire State Manufacturing Index at 13.30.
At 14.15, we have US capacity utilisation rate and industrial production.
The USD/JPY has reversed from these levels three times in the past and looks set to do so again.