The euro is at least stabilising after hefty selling yesterday as traders fret over the state of Italian political and banking systems. The EUR/JPY is posting small gains this morning, but the damage was done yesterday, with the pair off by 1.58% on the week.
Markets are generally seeking out safer harbours, driving demand for the yen while the euro suffers. The EUR/USD is unchanged after testing the 1.1500 level, with other euro pairs on the back foot, especially the EUR/CHF which plunged to below 1.1400.
While the euro is under-performing, other dollar pairs are also under pressure. The GBP/USD is unchanged this morning after breaking through 1.3300 yesterday. The AUD/USD is on the rise after hefty selling yesterday. The US dollar index continues to rise, helped by in-line consumer confidence.
The USD/JPY is on the rise, but the considerable damage was done yesterday, with the pair breaking through 108.50. The AUD/JPY is following suit after plunging to 81.00, finding support there this morning. The GBP/JPY is following a similar trend.
The USD/CAD has continued to push higher on US dollar strength and a weaker Canadian dollar, hurt by plunging oil prices.
Today we have US CB consumer confidence at 15.00.
While the EUR/USD has gather negative headlines, the GBP/USD has hardly been a picture of harmony. The pound continues to sell off in the face of dollar strength as interest rate expectation are pushed into the distance.