This morning, the Japanese yen is on the rise as markets look for safer harbours and the previous weeks excesses are blown away. The yen pairs are the biggest losers, with the AUD/JPY down 0.62%.
The USD/JPY itself has continued its losing run that first started in November. This comes as a government advisor advised the BOJ and its new head to stick to Abenomics.
The GBP/JPY has demonstrated the hardest reversal, with the pair selling heavily for the last four days including today.
The pound is generally lower this week with the GBP/USD the worst performer over today and yesterday. The GBP/USD has reversed most of Wednesday’s gains, while the EUR/GBP has climbed for each of the last four days.
The pound is not alone in facing dollar pressure, with the EUR/USD also falling, though at a more measured pace. Gold is also slipping from the highs.
This morning, we have UK net lending to individuals at 09.30.
European preliminary flash GDP is at 10.00.
US CB Consumer Confidence at 15.00.
BOE governor Carney speaks at 15.30.
This morning, the pound is under pressure again as the EUR/GBP returns to its median trading range. This comes as the shine comes off the pound’s recent Brexit picture of utopia.
We are likely to see this correction continue and the EUR/GBP rise.