The US dollar index is slipping back slightly this morning after hefty gains yesterday. Some of the biggest gains came against the Canadian dollar, which is suffering as oil prices continue to plunge on fears of over-production. The USD/CAD shot higher to above 1.3300 overnight, with minor losses so far this morning.
Dollar pairs generally came in for heavy selling yesterday with only tentative buying interest this morning. The GBP/USD erased Monday/s gains, while the EUR/USD suffered heavier selling, with only minor gains this morning. The EUR/GBP is unchanged after selling off yesterday.
The Australian dollar is performing well this morning, but this comes after some of the heaviest selling yesterday that saw the AUD/USD erase most of last gains.
The tech led stock market sell-off is driving demand for safe havens, with the dollar generally losing out to the likes of the Swiss franc as the USD/CHF struggles to stay above 0.9900 after tripping back through the parity line.
Yen pairs are generally on the front foot this morning as traders buy the US dollar over the yen and the likes of the GBP/JPY rally to erase the bulk of yesterday’s losses.
At 09.30, we have UK public sector net borrowing.
US core durable goods orders are at 13.30.
Crude oil inventories are also at 15.30.
There were some hefty gains for the USD/CAD yesterday with minor pull backs this morning, but the overall trend since October 1st has been for the US dollar to accumulate gains against the Canadian dollar. Weak oil prices are a key driver for this, with the additional safe haven demand for the Greenback.