The US dollar is weaker as markets stage a muted response to Trump’s China tariffs. Safe haven demand in the US dollar and Japanese yen is on the wane as investors express relief that tariffs aren’t as extreme as feared.
The dollar index is lower, with the dollar pairs on the rise. The AUD/USD is out-performing, with the EUR/USD setting up to test the 1.1700 level again. The GBP/USD is positive, but lags other dollar pairs.
The EUR/GBP is on the rise after the pair broke through the 0.8900 support level yesterday.
The USD/CAD is on the back foot, while the USD/CHF continues to struggle following hefty selling yesterday that pushed the pair well below 0.9650.
Yen pairs are higher as traders shun safe havens. The AUD/JPY has reversed the previous two days of losses, with the USD/JPY set to test 112.00 once again.
This morning, we have ECB president Draghi speaking at 08.15.
Canadian manufacturing sales are at 13.30.
The USD/CHF continues to struggle as dollar demand wanes, with the Swiss franc holding up better than other safe havens.