The British pound is holding most of yesterday’s gains as traders bet on a Brexit delay, with an outside chance of a second referendum. The GBP/JPY is giving back some of yesterday’s gains after pushing higher to test 146.00. Meanwhile, the GBP/USD is building on yesterday’s rally that saw the pair push through the 1.3100 level. The pound continues to out-perform the euro, with the EUR/GBP slipping to below 0.8650 for the first time this month.
With the exception of the pound, dollar pairs are on the back foot, with the AUD/USD reversing all of yesterday’s gains. The EUR/ USD is also slipping back to test the 1.1350 level.
The USD/CAD is on the front foot and set to test 1.3200 as oil prices come under pressure. The USD/CHF remains rooted to the parity line.
The USD/JPY is also slipping back after failing to break through the 111.00 level. The EUR/JPY has also slipped back below a key level, as the pair loses the 126.00 level. The AUD/JPY is has erased most of yesterday’s gains after failing to break 80.00 at the third time of asking this month.
Today, we have inflation report hearings at 10.00.
At 14.45, we have Fed Chair Powell testifying.
US CB Consumer Confidence is at 15.00.
The USD/JPY may be dipping this morning, but the trend since January 1st’s flash crash has been generally to push higher.
With yen demand weakening as global risk appetite increases, there could be further upside for the USD/JPY.