The US dollar has started the week on the back foot, potentially making it three straight days of backwards steps for the Greenback. Friday’s US non-farm payrolls could cement this trend.
Dollar pairs are consequently on the front foot, enjoying back to back gains. The AUD/USD is higher for the third straight day and leading the pack with an opening gap higher. Meanwhile, the EUR/USD is building on Friday’s push to about 1.1150, while the GBP/USD is climbing and continuing to hold the 1.2900 level.
The EUR/CHF has halted it’s decline and is holding the 1.1350 level, while the EUR/GBP is lower for the fourth straight day.
The USD/CHF has stalled at the 1.0200 level as the dollar backs off, while the USD/CAD is lower after an opening gap higher.
The yen pairs are generally positive, with the USD/JPY slightly higher, but the AUD/JPY is building on yesterday’s losses. The EUR/JPY and GBP/JPY are both enjoying back to back gains.
Today, we have EU M3 money supply at 08.00.
BOE governor Carney is speaking at 08.10.
US PCE and personal spending data comes at 12.30.
The US dollar is stepped off the gas so far this week, but there are plenty of unknowns this week in the form of major economic announcements. As such the medium term trend of dollar dominance could reassert itself. For dollar pairs, such as the EUR/USD, this could mean further selling.