This morning, the dollar index is on the back foot after a muted reaction to Trump’s state of the union speech.
This has been good news for the NZD/USD which is powering higher this morning. This comes despite the AUD/USD lagging, with heavier selling this morning that is reversing as we move through the morning.
Other dollar pairs are performing well, with the EUR/ USD and GBP/USD pushing higher. The pound is performing better than the euro, forcing the EUR/GBP lower.
The USD/CAD and USD/CHF are both slipping lower again as the dollar loses ground.
Yen pairs are mixed, with the USD/JPY slightly lower, but the GBP/JPY nudging higher.
We have Spanish Flash CPI at 08.00.
At 10.00, we have CPI flash estimate from Europe.
At 13.15, we have ADP non farm employment change.
At 13.30, we have US employment cost index as well as Canadian GDP and RMPI.
At 14.45, we have Chicago PMI and US pending home sales.
US crude oil inventories are at 15.30.
The big show is at 19.00 with the FOMC statement and federal funds rate.
The USD/CHF is extending its recent losing run as traders bet on the Swissy resuming its previous status as strong reserve currency (at least until the SNB step in)