Haven asset demand is slipping this morning despite the tariff battle rumbling on. The Japanese yen is hitting reverse gear hard, with the USD/JPY undoing nearly all of yesterday’s losses after hitting a low just above 109.00.
Other yen pairs are also recovering, with the AUD/JPY rebounding from below 76.00 this morning to make back most of yesterday’s losses. The EUR/JPY is performing better and is now positive for the week. The GBP/JPY is lagging however and struggling to regain the 143.00 level.
The dollar index is on the rise still though and is now higher on the week.
The EUR/USD is making small gains, but is also now positive for the week. By contrast the, GBP/USD continues to lag after heavy selling yesterday that pushed the pair to lows of 1.2950. The EUR/GBP continues to make consistent gains as the euro nudges higher.
Although higher this morning, the Australian dollar is lagging against the dollar and other dollar pairs after slumping heavily to 0.6940 yesterday.
The USD/CHF is recovering this morning after another heavy sell-off, this time to hit lows just above 1.0050. The EUR/CHF is also recovering, but there is still some way to go after slipping below 1.1300 at the close yesterday.
Today we have UK average earnings index at 08.30. At the same time, we get the unemployment rate and claimant count change.
German ZEW economic sentiment is at 09.00.
FOMC member George speaks at 16.45.
The pound continues to struggle as European elections loom and Brexit negotiations enter a quiet period.