This morning, the British pound remains under pressure, following two days of heavy selling. Pound bulls came in for a shock yesterday as UK inflation data came in well below estimates. CPI, RPI, PPI and HPI all came in below estimates, putting paid to previous expectations for an early Bank of England rate hike. The GBP/USD is now down on the week, as is the GBP/JPY, while the EUR/GBP has reversed higher.
The dollar index is flat this morning after climbing yesterday. Dollar pairs have been mixed, with the AUD/USD making gains for the last two days, while the NZD/USD has fallen flat for three days by contrast.
The euro has held firm despite the pound’s travails, with the EUR/JPY making gains yesterday.
The USD/CAD rose yesterday after the BOC opted to keep rates on hold. The Canadian dollar is generally weaker after officials provided a more mixed message than expected.
Silver surged yesterday, while gold held ground.
The yen remains range bound, with the USD/JPY making gains yesterday.
Coming up today, we have UK retail sales at 09.30.
FOMC Brainard speaks at 13.00.
At 13.30, we get the Philly Fed Manufacturing index and unemployment claims.
FOMC member Quarles speaks at 14.30.
MPC member Cunliffe speaks at 17.30.
The USD/CHF has continued to climb as the dollar regains its pace.