The Japanese yen and the US dollar index are on the back foot as traders bet on a positive resolution to extended trade talks. The dollar index is following up Friday’s losses.
The EUR/USD struggled on Friday in volatile trading, but ultimately closed higher, with follow-up buying this morning. The GBP/USD is following up a solid Friday which saw support around 1.2800 hold, with a gap higher this morning. The EUR/GBP remains below Friday’s close and is hovering just above support around 0.8750 as Brexit hopes remain.
The AUD/USD is also performing well after last week’s surprise boost for neighbouring NZD/USD, with follow on buying this morning.
The USD/CAD is slipping back again for the second straight day, while the USD/CHF has slipped below the 1.0050 level after failing to push through 1.0100 last week.
The USD/JPY is unchanged so far, while the GBP/JPY posted an opening gap higher that is holding thus far. The EUR/JPY is also positive after three days of losses. Meanwhile, the AUD/JPY also made an opening gap, posting gains of support around 78.00.
Today is a public holiday in the US.
The German Buba monthly report is at 11.00.
Trade talks aside, the USD/CHF has struggled to push past the 1.0100 level in recent months, with the 1.0000 level acting as a magnet for price action.
Traders are taking money off the table with the dollar, while the Swiss franc always has the potential for gains in this risk filled climate.