This morning, world markets have a positive bias on expectations of a positive resolution to North Korea talks and the China trade dispute. The US dollar index initially gapped higher at the open, but has since slipped back to unchanged levels.
The AUD/USD is leading the charge, recovering from the opening gap lower to make small gains. The AUD/JPY is following suit as the Aussie has the most to gain from relief from current tensions.
The EUR/GBP is trading lower after four days of solid gains, with the pound recovering from last week’s shellacking. The GBP/USD is positive and finding support around the 1.4000 region. The GBP/JPY has made a hefty gap higher.
Meanwhile, the EUR/USD is still recovering from its opening gap lower, following a volatile session on Friday. The EUR/JPY is slipping lower again after the open.
The USD/JPY gapped higher, but is struggling to overcome what looked like resistance in the 108 level.
We have a range of European PMI data points this morning, starting with French flash manufacturing PMI and services PMI at 08.00. German data follows at 08.30, with pan European data at 09.00.
US existing home sales are at 15.00.
BOC governor Poloz speaks at 20.30.
RBA assistant governor Kent speaks at 23.00.
The USD/CAD rallied hard in the latter part of last week, despite oil prices remaining at the highs.
With global tensions easing, dollar interest may subside, helping the USD/CAD to trend lower again.