This morning, the yen remains in firm control of currency markets, with the USD/JPY testing the April lows for 2017.
The euro came in for some heavy selling yesterday, forcing the EUR/JPY sharply lower. The pair is unchanged this morning, but has now undone much of last week’s surge.
The EUR/GBP also continues to reverse tack, with the EUR/GBP holding yesterday’s losses.
Meanwhile, the dollar pairs are enjoying easy conditions as the Greenback drops off. The GBP/USD experienced strong selling yesterday, while the NZD/USD was one of the top performers.
Coming up today we have Canadian trade balance and labour productivity at 13.30.
At the same time we get US trade balance.
At 15.00, we have the latest BOC rate statement.
US ISM non-manufacturing PMI is also released at 15.00.
The euro has under performed of late, but the long term trend remains untroubled.
There are emerging concerns about the strength of the eurozone recovery and inflation, but the dollar weakness is likely to keep a floor under EUR/USD losses.