This morning, the dollar index is on the back foot despite the RBNZ cutting rates and sending the NZD/USD plunging in the early hours of this morning. Since then, the Kiwi has recovered most of these losses, while the dollar index has lost ground and is challenging the week’s lows.
The AUD/USD continues to perform well after the RBA kept rates on hold, with the pair set for three days of straight gains.
The EUR/USD has been mixed and remains rangebound, despite gains this morning that put the pair above support at 1.1200. The GBP/USD has been struggling however with only small gains this morning after two days of losses following Monday’s opening gap lower. The EUR/GBP is climbing for its third straight day as a consequence, off support around 0.8500.
The USD/CAD is on the back foot, but rangebound as the highs still remain within sight. It’s a similar story with the USD/CHF with the 1.0200 level acting as a price magnet despite selling pressure this morning.
Yen pairs are showing a clearer trend as the USD/JPY drops heavily below support at 110.00. The AUD/JPY is lower and trading below Monday’s opening gap lower. Meanwhile, the EUR/JPY continues to decline, trading at its lowest levels since the start of the year. The GBP/JPY is also struggling as it sits below support at 144.00.
It is a French Bank Holiday today.
MPC member Ramsden speaks at 08.15.
ECB Monetary Policy Meeting Accounts are at 11.30.
FOMC member Brainard speaks at 12.30.
With the pound lagging due to the lack of Brexit momentum and the yen finding its feet, the GBP/JPY is looking vulnerable.