This morning, the US dollar is slightly higher, but the damage from yesterday’s selling was significant.
Dollar pairs have taken advantage of weakness, making big moves as risk-on trading takes hold. The biggest movement came on the USD/CAD which plunged in the favour of the Canadian dollar as oil prices hit four highs last night.
The AUD/USD and NZD/USD are on the back foot, reversing some of yesterday’s gains. The Kiwi hit its highest levels for the month.
The EUR/USD and GBP/USD are rallying for the fourth day in a row as markets find the positive in global events and the ECB makes bullish signals.
The yen pairs are pausing with minor losses after sizeable gains yesterday.
At 09.30, we have UK manufacturing production. Goods trade balance is at the same time.
ECB President Draghi speaks at 12.00.
At 13.30, we have US CPI and core CPI.
The latest FOMC meeting minutes are released at 19.00.
The GBP/JPY is backing off slightly this morning, but there is no denying the current trend for the pair. The pound continues to find the positive in Brexit negotiations, while the yen continues to back off.