There are numerous threads pulling at markets at the moment, including stress on emerging markets and Argentina, oil prices at 3 ½ year highs and soaring US Treasury yields. The clearest reaction has been seen on the USD/JPY as the yen soars on safe-haven interest. The USD/JPY is approaching 111.00 after breaking just three days ago.
Other yen pairs are on the rise, with the GBP/JPY knocking on the doors of 150.00.
The US dollar index remains at the highs, though has a negative bias this morning.
Dollar pairs are generally on the front foot this morning, with small gains for the EUR/USD and AUD/USD. The GBP/USD is struggling, however.
Gold continues to struggle after Tuesday’s collapse, while silver is holding up relatively well.
FOMC Mester speaks at 08.00.
Canadian inflation is at 13.30
The dollar may be under some pressure this morning, but the pound has many question marks hanging over it, not least its menopausal economy.