This morning, the New Zealand dollar remains on the back foot after heavy selling yesterday. Markets took an instant dislike to the nation’s new Labour leader, with the NZD/USD now down 2.55% on the week.
The yen continues to retreat ahead of the weekend’s Japanese elections, with the USD/JPY set to challenge the October highs, while other yen pairs enjoy gains.
Dollar pairs are generally on the back foot, but it’s the pound where the more intense selling can be seen. The GBP/USD has dropped for four of the last five sessions, while the EUR/GBP jumped higher yesterday.
The US dollar index is enjoying solid gains so far today, following yesterday’s better than expected unemployment claims and Philly Fed manufacturing index.
At 09.30 today, we have UK public sector net borrowing.
This is followed by Canadian CPI and retail sales at 13.30.
US existing home sales at 15.00.
The euro is enjoying out performing its peers at the moment on hopes for Macron’s regional reforms. Meanwhile the yen continues to weaken as we head to the weekend’s elections.
Even with a return of Abe, there could enough negativity with this weekend’s Japanese elections that could spark further upside for the EUR/JPY.