The British pound remains under pressure ahead of another crucial EU meeting, while traders are eyeing today’s UK borrowing nervously. The GBP/JPY and GBP/USD have continued to slip lower. The pound made losses against the dollar yesterday, while the likes of the euro and Aussie made gains, forcing the EUR/GBP higher.
The euro bounced off the lows yesterday, with minor losses this morning. This comes despite mounting concerns over the state of Italian politics as a political novice is proposed for PM.
As such, the euro remains weak against the Swissy, with the EUR/CHF lower again after a brief rally yesterday.
The Aussie remains strong though, rebounding well against the dollar and continuing to pop higher against the yen.
The USD/JPY is slipping back this morning, but is holding at the highs as dollar strength trumps the yens haven status.
The dollar index remains on the back foot after a hefty reversal yesterday.
Today, we have UK MPC member Vliegh speaking at 21.15
UK public sector net borrowing is at 09.30.
UK inflation report hearings are at 10.00.
The euro has lost considerable ground against the Australian dollar of late as the Aussie powers higher on regional risk relief.
The euro continues to be weighed down by Italian politics so the EUR/AUD’s downswing could have further to go.