Morning Report: 07.00 London
The euro remains weak as markets fret over Italy’s budget expansion. The EUR/USD continues to slip lower after yesterday’s failure of the 1.1600 level. The EUR/GBP is unchanged so far, but generally the momentum remains with the pound on Brexit hopes and against the euro on Italy concerns. The EUR/JPY is struggling at resistance around 132.00.
The pound is holding up relatively well against the dollar, with moderate falls from the 1.3300 level in comparison to other currencies.
The AUD/USD is also unchanged, with support at 0.7200 holding while the AUD/JPY continues to challenge the 82.50 level. The RBA kept rates on hold overnight.
The Canadian dollar remains strong, with the USD/CAD continuing to drop below Monday’s opening gap lower. This comes as oil prices spike higher overnight.
The USD/CHF continues to bounce off the lows as the US dollar finds buyers betting on further rate hikes.
The USD/JPY is pausing at the highs, with the 114.00 resistance level pushing back for now.
Coming up today
At 09.30, we have UK construction PMI.
US FOMC member Quarles speaks at 15.00.
US Fed Chair Powell speaks at 17.45.
The Swiss franc continues to weaken as safe haven demand wanes in the face of dollar dominance.
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