The Japanese yen continues to struggle on the back of yesterday’s GDP miss and the current preference for riskier assets. Yen pairs are extending gains, with the USD/JPY set for five gains in five sessions.
The AUD/JPY is leading the pack higher, though still remains below last week’s lows. The EUR/JPY is higher and making good nearly all of yesterday’s losses.
The GBP/JPY showed unexpected strength yesterday to close higher despite UK inflation falling below estimates. In fact the EUR/GBP reversed yesterday as the pound overtook the euro.
The GBP/USD is making small gains after volatile losses yesterday. While the pound struggled, the EUR/USD fared even worse, slipping to its lowest levels since November. There are gains for the euro this morning though.
The AUD/USD is making gains as well, helped by the losses seen on the dollar index this morning.
Also benefitting from the dollar’s turn is the USD/CAD which has reversed most of yesterday’s gains.
The USD/CHF punched through to test the November highs yesterday, but is starting a reversal this morning.
At 09.30, we have MPC member Vlieghe speaking.
European Flash GDP is at 10.00.
At 13.30, we get US core retail sales and PPI.
The GBP/JPY has not regained the January highs yet, but there is momentum here that is worth observing.
Despite Brexit concerns going to the wire, the pound has not capitulated. On the flip side, the tide is turning against the yen.