The US dollar remains under pressure, posting its third straight day of declines as pressure mounts on the Fed to ease its hawkish stance.
Dollar pairs are mixed, with the GBP/USD recovering after gapping lower at the open following Monday’s unexpected advance above 1.2800.
The AUD/USD reached a three year low over night, but has since rebounded to the comfort of 0.7050 this morning.
The EUR/USD is out-performing through, with the EUR/USD climbing to test 1.1500. The EUR/GBP has been volatile, with the pair gapping higher on euro strength this morning following New Year’s eve’s advance for Sterling.
The USD/CAD is dipping back from the highs, while the USD/CHF continues to drop outside of the previous trading zone to test 0.9800.
The yen is the power currency though, with the USD/JPY gapping lower and falling further this morning on the first trading day of 2019 to test the lowest levels seen since June.
The AUD/JPY is also testing new lows, while the EUR/JPY and GBP/JPY follow suit.
Today, we have UK manufacturing PMI at 09.30.
With the yen in the driving seat there could be value in backing further downside for the USD/JPY over the next fortnight.