This morning, the dollar index is slightly on the back foot, following further gains yesterday. Nevertheless, the dollar remains near three month highs as tech giants such as Facebook impress with their earnings.
The EUR/USD continues to lag ahead of today’s ECB meeting. No change is expected, but long term forward guidance is expected to err towards dovish. The EUR/GBP has a negative bias, following three days of losses.
Other dollar pairs such as the AUD/USD and GBP/USD are slightly higher after heavy selling yesterday.
The Swiss franc continues to weaken, pushing through the 0.9800 level yesterday.
The yen pairs are also pausing after another surge yesterday for the USD/JPY.
Today, we have Spanish unemployment rate at 08.00.
Following this, we get the ECB minimum bid rate at 12.45, with the press conference at 13.30.
US durable goods orders are at 13.30, with unemployment claims at the same time.
Solid tech earnings and passing concerns over trade tariffs are helping the US dollar to solidify its position. Meanwhile, the euro continues to struggle, making a LOWER trade attractive.