Morning Report: 07.00 London
The US dollar is experiencing an amount of selling pressure, but yesterday’s post-Fed gains are still unthreatened. The dollar remains the currency of choice for traders with its well communicated rate path pointing firmly higher.
The EUR/USD is recovering to test the 1.1650 level after huge losses yesterday, with the pair falling from 1.1750. The market is nervous as the Italian populist party pushed through a higher spending plan. The EUR/GBP also slumped further, with most of last week’s gains now erased.
The euro came under pressure, but the Swiss franc sunk even further, with the EUR/CHF making gains. The Swissy was one of the biggest losers against the dollar yesterday, with the USD/CHF punching above 0.9750.
The GBP/USD came in for selling pressure yesterday, but held up better than its peers. The AUD/USD also sunk back towards the lows yesterday.
The USD/JPY exploded back towards the highs, closing in on 113.50. Other yen pairs are making small gains this morning after a mixed performance yesterday.
Coming up today
At 08.00, we have the KOF economic barometer.
Spanish Flash CPI is at 09.00.
UK current account and final GDP data is at 09.30.
At 10.00, we have European CPI flash estimate.
At 13.30, we have Canadian GDP and RMPI.
Also at 13.30, we have Core PCE price index and personal spending.
At 14.20, we MPC member Ramsden speaking.
Chicago PMI is at 14.45.
Revised UoM Consumer Sentiment is at 15.00.
The USD/JPY jumped higher yesterday, with follow-on buying this morning. The dollar is on a high, while the yen retreats, with further upside on the cards from here.
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