Despite Stock markets staging a recovery, the safe haven of the Japanese yen is in demand this morning. The USD/JPY is lower for the second straight day following yesterday’s reversal from the 109.00 level. The EUR/JPY is struggling to break through 125.00, while the GBP/JPY is set to test support at 138.00. The AUD/JPY is holding up relatively well though.
The US dollar index continues to reverse, falling to its lowest levels since November.
Dollar pairs are mixed, with the AUD/USD leading and higher for the sixth straight day. The EUR/USD is unchanged though after yesterday’s spectacular rally. Meanwhile, the GBP/USD is reversing after struggling to break through the 1.2800 level.
The USD/CAD dropped yesterday following yesterday’s BOC report which kept rates on hold as expected and offered a cautious note. The pair is rallying this morning though.
The Swiss franc continues to gather buyers though, with the USD/CHF plunging below 0.9759 yesterday.
Gold is challenging the highs, with a test of $1295 this morning.
Today, we have the ECB Monetary Policy Meeting Accounts released at 12:30.
Fed Chair Powell speaks at 17:00
FOMC member Bullard speaks at 17:40
FOMC member Evans speaks at 18:00.
Stock markets are attempting a recovery, but the main haven assets of gold and the Swiss franc are climbing in demand. This hints at a level of caution across world markets.
The USD/CHF has broken its previous trading range and the September lows could now be a target.