The Japanese yen is in firm control as China makes its first move against US tariff threats, with the PBOC relaxing deposit rules to help heavily indebted companies. The USD/JPY has pulled back further from the highs, while the AUD/JPY is slipping back towards the lows below 81.00. The GBP/JPY and EUR/JPY are also under pressure.
The AUD/USD is on the back foot after a solid day on Friday. The GBP/USD and EUR/USD are unchanged though as the pressure remains on the Asia region rather than European political uncertainty.
The EUR/GBP is slightly lower as the pound continues to find favour on the prospect of a firmer stance from the BOE.
Gold continues to shift lower, trading at its lowest trading close level for 2018. Silver is trading in the lower extremes of its recent trading range.
The Swiss franc continues to regain ground, with the USD/CHF continuing to slip below 0.9900 this morning. The EUR/CHF has continued to slip lower
The USD/CAD suffered a sharp reversal Friday on OPEC output increases, but the Canadian dollar has slipped back again this morning, helping the pair to gap higher.
We have a quiet day today, with German ifo business climate the only highlight at 09.00.
Gold remains under pressure, but the selling so far hasn’t reached extreme levels, which could point to further downside from here.