The US dollar remains subdued despite better than expected retail sales and Empire State Manufacturing data yesterday. Trump’s controversial tour of Europe has culminated with a meeting with Putin in which both parties denied any election wrong doing. In this environment, the Swiss franc is picking up the baton for safe havens, helped by euro strength. The USD/CHF is reversing again this morning at 0.9965 after failing to make progressing beyond the parity line.
Dollar pairs are on the rise, marking at least three days of gains for most pairs. The Aussie is setting the pace this morning, after the release of the latest RBA meeting minutes in the small hours.
The EUR/USD is holding above 1.1700, with the GBP/USD just about positive this morning and consolidating at the lows.
The USD/CAD has continued to fall as oil prices plunged below $72 yesterday.
The yen continues to weaken, with the GBP/JPY approaching 149.00 from the downside. The EUR/JPY is showing impressive momentum, approaching 132.00. Meanwhile the USD/JPY is pausing at the highs.
Gold looks poised for fresh lows and is trading just above the $1240 handle.
Today, we have BOE governor Carney speaking at 09.00.
UK average earnings, claimant count change and unemployment rate are at 09.30.
Canadian manufacturing sales are at 13.30.
US capacity utilisation rate is at 14.15, alongside industrial production.
US Fed Chair Powell testifies at 15.00.
The EUR/JPY has shown impressive resilience in the face of doubts over European cohesion this summer.
With the yen on the back foot currently, there could be further upside form here and a good way to play this is a HIGHER trade predicting that the EUR/JPY will close above 132.50 in 14 days for a potential return of 165%.