The dollar index is on the back foot this morning, helping dollar pairs to make tentative gains. The EUR/USD is recovering after hefty losses yesterday that saw the pair slip to test the 1.1300 level.
The AUD/USD is also making small gains, but the down swing from the January highs is still in place.
The USD/CAD is on the back foot as the Canadian dollar finds its feet again after a shaky start to the week. The USD/CHF is also slipping back, but remains within reach of the parity line.
The pound has been the star performer with gains yesterday that went against the grain. There are small losses this morning, but the pound is holding the 1.3100 level. The GBP/JPY is continuing its winning run, making gains each day this week to test the 144.00 level. The EUR/GBP made another slump yesterday to hit its lowest levels since April 2018.
The yen pairs have a positive bias, with the USD/JPY set for another test of 110.00. The AUD/JPY and EUR/JPY remain rangebound, but have made small gains this morning. The GBP/JPY continues to outperform, pushing through the 144.00 level.
Today, we have German Ifo Business Climate.
The EUR/USD is nudging higher this morning, but the pressure has been building on the beleaguered euro.
With money also flooding from the euro into the pound, there could be further downside for the EUR/USD.