Sterling is slipping back slightly this morning after strong gains yesterday on emerging campaigns to block a no-deal Brexit. The GBP/USD garnered headlines after pushing through the 1.3000 yesterday and testing 1.3100 briefly this morning before giving some gains back. The GBP/JPY is faring better, with follow-on gains so far as the GBP/JPY eyes the 144.00 resistance level. The EUR/GBP is in the black so far this morning after heavy selling yesterday that pulled the pair down to the November lows around 0.8700.
The AUD/USD continues to struggle by contrast despite better than expected employment data this morning. The pair has reversed all of yesterday’s gains this morning to test the 0.7100 level. The AUD/JPY is also slipping, pushing through the 78.00 level once again.
The dollar index is on the front foot so far this morning, rallying to make back most of yesterday’s losses. The EUR/USD is slipping back in line with most other dollar pairs.
The USD/CAD has a positive bias after Canadian retail sales slipped below estimates yesterday.
The USD/CHF is also showing tentative gains after hitting reverse gear yesterday falling through the 0.9950 level.
Yen pairs are mixed, with the USD/JPY rallying for the second straight day, with even the EUR/JPY making gains.
Today we have a slew of European Manufacturing and Services PMI data points starting with French data at 08.15, followed by German data at 08.30 and European data at 09.00.
At 12.45 we get the latest ECB main refinancing rate, with the press conference to follow at 13.30.
There are clear signs of the Chinese economy slowing down, not helped by the ongoing trade war with the US. This isn’t the only cause of decline though with rising costs and domestic demand slowing from admittedly stellar levels.
Often seen as a China proxy, the AUD/USD is slipping this morning despite strong data – never a good sign.