Morning Report: 07.00 London
The US dollar is recovering after core retail sales came in well below estimates yesterday. Dollar pairs are on the back foot, but so far yesterday’s gains are holding.
The AUD/USD is on the back foot, while the NZD/USD out-performs. The EUR/USD and GBP/USD are both on the back foot, but the pound’s gains were notable yesterday after making good Monday’s opening gap losses.
The USD/CAD is unchanged after the Canadian dollar continued to weaken against the US yesterday. Meanwhile, the Swiss franc is weaker following yesterday’s reversal which saw the USD/CHF test the 0.9850 level.
Yen pairs are on the front foot, with the USD/JPY testing the bullish waters for only the second time since the major reversal began on the 4th. Other yen pairs are showing minor gains as investor pressure for safe havens diminishes.
Gold is unchanged after extending its winning run following a spike higher last week that broke the mid-summer’s trading range.
Coming up today
Today, we have UK average earnings index at 09.30. The unemployment rate is released at the same time.
Canadian foreign securities purchases is at 13.30.
MPC member Cunliffe speaks at 14.15.
FOMC member Daly speaks at 21.15.
The dollar remains the currency of choice for investors and is projected to raise rates further and faster than the euro, yen and pound. By contrast, the euro remains weighed down by fears of Italian banks dragging the wider economy lower.
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