The US dollar index is weaker again this morning after heavy selling yesterday. While stock markets trade at record highs, the dollar plunged as better than expected consumer confidence dented demand for safe havens. This comes despite mixed tech earnings, with Google slumping and Apple rising after their mixed reports.
The GBP/USD saw some of the biggest moves yesterday, rising to smash through the 1.3000 level and erase most of last week’s losses. This comes as hopes for a UK domestic political rapprochement rise. The EUR/GBP is unchanged this morning, but dropped heavily yesterday to test support at 0.8600 as the pound outstripped the euro. The EUR/USD itself also enjoyed gains yesterday and is unchanged this morning as we enter May Day bank holidays across the continent.
The AUD/USD is lagging other European dollar pairs after Chinese data disappointment yesterday.
The USD/CHF continues to hold just below the 1.0200 level, while the EUR/CHF is back on its upwards track as the euro outstrips the Swissy’s plodding pace.
The USD/CAD came in for some of the heaviest selling yesterday, plunging through the 1.3400 level. Support at 1.3300 is the next stop.
The AUD/JPY is on the rise, but remains rangebound. The EUR/JPY and GBP/JPY are continuing their winning run, with the latter showing the most consistency. The USD/JPY is higher and challenging 111.50 after slipping below it yesterday.
Today, we have UK manufacturing PMI and net lending to individuals at 08.30.
US ADP non-farm employment change is at 12.15.
US ISM manufacturing PMI at 14.00.
At 18.00, we get the FOMC statement, with the press conference at 18.30.
BOC governor Poloz speaks at 20.15.
The USD/CAD’s downswing is worth noting as there is significant support around 1.3300. There’s a good chance of a pop below this over the next few days though.