The dollar is surprisingly mixed despite announcement of a trade agreement with the EU yesterday and a joint statement condemning China for intellectual property theft. There were big gains for dollar pairs yesterday, with small losses this morning.
The EUR/USD is on the back foot, but the gains made yesterday are in no trouble. The GBP/USD is slightly weaker after rising above 1.3200 yesterday. The AUD/USD has been seeing the biggest moves in both directions, with a push above 0.7450 yesterday which has been mostly reversed this morning.
There were huge losses for the USD/CAD as traders bet on the Canadian dollar benefitting from new trade relationships. There is a small reversal this morning.
The yen is ultimately the big winner this morning, with the USD/JPY continuing its reversal from the highs and trading below 111.00 this morning.
The AUD/JPY is the bigger loser this morning, continuing the mid-July reversal. The GBP/JPY and EUR/JPY are also extending their losing runs.
Gold is also on the back foot again, struggling at the lows.
Today we have Spanish Unemployment rates at 08.00.
At 12.45, we get the ECB main refinancing rate, with the ECB press conference at 13.30.
US durable goods are at 13.30, with unemployment claims at the same time.
The EUR/JPY’s mid-summer blip is in danger of turning into something more sustained. With the yen picking up the ‘safe haven’ baton, we could well see further downside from here.