The British pound is holding up relatively well, after average earnings came in above estimates yesterday. The EUR/GBP closed Monday’s opening gap higher yesterday, though finished off the lows around 0.8750. There is follow on selling this morning, with Brexit fears dampening economic optimism. Like other dollar pairs, the GBP/USD is on the back foot, as is the GBP/JPY.
The AUD/USD holding up relatively well, with only minor selling this morning after support around 0.7050 holds. The AUD/JPY resumed its down swing this morning after a recovery yesterday.
The Euro is under pressure again this morning. EUR/JPY is selling off with moderate force this morning, erasing yesterday’s gains and keeping the downtrend on track. The EUR/USD is testing support at 1.1550, while the EUR/CHF is on the back foot, testing the euro’s rise against the Swissy.
The USD/CAD is on the front foot, making gains after four days of losses. The USD/CHF has moved back within its range, just above 0.9900.
We also have day 1 of the EU economic summit.
At 09.30, we have UK inflation, with CPI and RPI.
At 13.30, we have US building permits and housing starts, released alongside Canadian manufacturing sales.
US crude oil inventories are at 15.30.
FOMC member Brainard speaks at 17.10.
Buba President Weidmann speaks at 17.30.
MPC member Broadbent speaks at 18.00.
At 19.00, we have the release of the FOMC meeting minutes.
The Swiss franc is weakening as stock markets stabilise and risk appetite diminishes. Meanwhile, the US dollar is rebuilding momentum.