Morning Report: 07.00 London
The EUR/USD is rebounding off support around 1.1550 as Italy concerns ease. This reverses yesterday’s losses which marked five days of losses. The EUR/GBP is also on the rise, building on yesterday’s losses as Brexit concerns slow down the pound. The EUR/CHF is also making gains this morning and is heading for its highest closing high since August. The EUR/JPY is also reversing recent losses as support around 131.00 holds.
The GBP/USD is also making gains following yesterday’s failure of 1.3000, with support now becoming resistance.
Other dollar pairs are on the back foot, with the AUD/USD slipping back. The USD/CAD is unchanged and holding last week’s gap lower. The USD/CHF continues to strengthen as safe haven demand diminishes and the dollar takes in safe haven flow.
The USD/JPY is back on the rise after reversing from the high of 114.00 level. The AUD/JPY also hit the brakes hard yesterday, but 81.50 held.
Coming up today
Today, we have UK Services PMI at 09.30.
At 13.05, FOMC member Barking speaks.
ADP non-farm employment change is at 13.15.
At 15.00, we have ISM non-manufacturing PMI.
Crude oil inventories are at 15.30.
FOMC member Brainard speaks at 19.00, with Mester speaking at 19.15.
Fed Chair Powell speaks at 21.00.
The euro remains resilient in the face of Italy concerns which hints at underlying strength. There could be further upside from here on the EUR/USD despite underlying dollar strength.
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