This morning, world markets look set to extend their recovery, with the US dollar index backing off. The dollar pairs are generally higher, led by the EUR/USD which is setting up for two straight days of gains.
The AUD/USD continues to push higher after Monday’s opening gap higher, while the NZD/USD mirrors a similar run.
The GBP/USD is higher but the pound is generally lagging other pairs, helping the EUR/GBP to rise for the third straight day.
Across yen pairs, the USD/JPY is leading a negative bias and heading for the September lows. The AUD/JPY is reversing yesterday’s gains, while the EUR/JPY holds up relatively well.
Coming up today, we have UK CPI at 09.30 and RP at the same time.
At 13.00, we have US FOMC member Mester speaking.
The USD/JPY continues to back off as the dollar rate hike excitement subsides. There could be more where this came from, making a LOWER trade attractive.