This morning, world markets have a risk-off bias as traders fret over renewed fears of global trade wars. The dollar index is slightly higher, giving most dollar pairs a negative edge.
The AUD/USD is on the back foot as a potential direct and indirect victim of tariff wars. The AUD/JPY is lower again as traders find a safe home in the yen.
The EUR/USD and GBP/USD are mixed, with the pound making small gains this morning, while the euro backs off. The EUR/GBP has continued to sell-off.
The USD/JPY has a slight negative bias, following on from yesterday’s selling.
Gold and silver remain rangebound as traders balance the need for safe havens against the general dollar strength.
Today, we have the SNB Monetary Policy Statement and Libor rate at 08.30. Swiss PPI is just before this at 08.15.
At 12.30, we have the Empire State Manufacturing Index, alongside unemployment claims.
The pound appears to have the upper hand against the euro despite ongoing Brexit uncertainty on both sides of the channel. There appears to have been an overreaction towards the euro recently (and Brexit sentiment), making a EUR/GBP reversal continuation more likely.