Trump’s global diplomatic antics are causing frictions and divisions amongst world allies. In offering the olive branch to Russia, Trump has set himself against his G7 colleague, with Canada’s Trudeau on the receiving end of a lashing. The dollar index is holding up well despite Trump’s activities.
The biggest movements have come against the yen, with most yen pairs on the back foot. The USD/JPY is on the rise again following two days of losses. Other yen pairs such as the GBP/JPY and AUD/JPY are on the rise after two days of losses.
The dollar pairs are mixed, with gains for the EUR/USD. The GBP/USD is on the back foot by contrast, while the AUD/USD barely changed. The USD/CAD has gapped higher after selling off last week.
Coming up today, we have UK manufacturing production at 09.30. Goods trade balance is also at 09.30, released alongside construction output and industrial production.
The euro and pound have been stuck in a messy trading range against each other for the past few months, but the euro has gradually been gaining ground since the April lows.
The higher part of the range could be a good target before more range bound trading resumes.