This morning, the British pound has extended its rally after a renowned MPC dove appeared to turn hawkish on Friday. The EUR/GBP has continued its dramatic decline, while other dollar pairs advance.
The GBP/JPY has gapped higher this morning as yen pairs rally across the board. This morning’s move continues the recent trend of minor risk-off trading followed by a rapid return to risk-on training. This recent move comes as analysts expect the US to take a more diplomatic approach with North Korea.
The AUD/JPY is leading markets higher, helped by the easing of tensions around Korea, the AUD/USD is performing well as is the NZD/USD.
Meanwhile, gold continues to slip from the highs.
Coming up today we have European final CPI at 10.00.
Following this, we get Canadian Foreign securities purchases at 13.30.
BOE Governor Carney speaks at 16.00.
BOC governing council member Lane speaks at 19.00.
The yen rally is back on track with a bang, while North Korean Tensions ease.
The yen pairs have rallied hard as a result, with the AUD/JPY leading the pack. There could be more upside ahead from here as well as yen pairs play catchup.