Emerging markets are recovering this morning, pulling demand for the safe havens of the US dollar and Japanese yen. This comes as the US and China are set to resume trade talks.
The Australian dollar is surging, with the AUD/USD erasing two days of losses, with the AUD/JPY recovering yesterday’s sell off. Aussie unemployment rate came in above expectations this morning.
The dollar pairs are generally on the rise, with the euro recovering off the lows. The EUR/USD, EUR/CHF and EUR/GBP are all positive after a short period of pressure.
The pound is lagging on mixed data. PPI came in above estimates, while RPI disappointed. Markets are eyeing UK retail sales later today.
Gold plunged below $1174 yesterday and touched a low of $1160 this morning before recovering to make small gains.
The US dollar is slipping back against the Swiss franc and Canadian dollar, but both remain rangebound.
Coming up today, we have UK retail sales at 09.30.
Canadian manufacturing sales are at 13.30.
At the same time, we get US building permits, housing starts and Philly Fed Manufacturing Index.
The EUR/GBP is back on the rise again after a short period of pressure on Turkey contagion threat. The pound is still facing Brexit uncertainty though, so worth betting on further upside for the euro.