This morning, markets are rangebound as traders await the opening salvos of Trump’s China trade tariff decisions. Friday saw a surge in interest for the dollar, despite poor retail sales data. This morning, the dollar is unwinding a small part of those gains, helping dollar pairs to push higher.
The AUD/USD gapped lower at the open, but is back up to parity as we move through the morning session.
The EUR/USD dropped back significantly from the 1.1700 level on Friday, but is also making small gains this morning. The EUR/JPY is also attempting a positive session after dropping from the 131.00 level on Friday. No such rebound for the EUR/GBP so far through as the pair remains firmly below the 0.8950 level.
The GBP/JPY and GBP/USD are also making small gains, but from a less severe position as the euro, as the pound maintains its outperformance.
The dollar is just still keeping the Swiss franc at bay as the USD/CHF bounces off 0.9650.
Today, we have European final CPI at 10.00.
At 13.30, we have Canadian foreign securities purchases and US Empire State Manufacturing Index.
Gold continues to struggle in the face of the strong US dollar. There are many other head winds though such as the rise of other gold ‘alternatives’ in recent years such as Bitcoin.
All these trends are set to continue, making a ‘LOWER’ trade attractive.