This morning, the Japanese yen continues to flirt with 17 months highs as it continues as the currency of choice amid the trade war turbulence. The USD/JPY is unchanged after consistent losses last week. Other yen pairs have lifted slightly higher, with the AUD/JPY lead up, up 0.50%.
The AUD/USD has gapped higher, as traders re-assess the Aussies following last week’s dire employment data. The NZD/USD is continuing to out-perform.
The dollar pairs are generally higher, as the dollar index extends Friday’s losses. The GBP/USD has shown some early thrust on Brexit hopes, gapping higher. The EUR/USD is also higher, while the EUR/GBP gapped lower and has climbed through the morning session.
The Canadian dollar continues to claw back losses, as the USD/CAD slips lower. This comes as oil prices rebound rapidly to come within range of the 2018 highs.
Coming up today, we have German Buba President Weidmann speaking at 10.30.
FOMC member Dudley speaks at 17.30.
FOMC member Mester speaks at 21.30.
While the AUD/JPY is impressing this morning, the yen’s strength is hard to ignore.
With global trade war threats continuing to threaten, there could be further downside from here.