Asia shares slip as U.S. earnings disappoint, dollar gains – RTRS
Dollar pressured by sterling's rebound from selloff – RTRS
GBP/USD remains highly volatile. The pair fell from 1.23 to 1.2090 in yesterday's NY session, only to retrace the entire move in Asia and reach a high of 1.2320. There was no news that could have triggered either of the moves, so price action is still purely flow-driven. There were also large squeezes in the GBP cross pairs. EUR/GBP declined from 0.9120 to 0.8970, while GBP/JPY rallied from 124.80 to 127.60. GBP traders should get used to the high volatility in the near-term, as uncertainties around the Brexit process continue to make traders nervous.
EUR/USD flows were light and the pair traded 1.1040-70 overnight. The next major support level is 1.10, while resistance is now seen at 1.1120. USD/JPY fell overnight amid the risk-off bias in markets, from 103.70 to 103.30.
However, the commodity currencies bounced despite the risk-off sentiment, mostly due to the USD weakness that the rally in GBP caused. AUD/USD rallied from 0.7535 to 0.7590, while NZD/USD rose from 0.7050 to 0.7095.
07:00 BST – German WPI
07:45 BST – French CPI
10:00 BST – Bank of England Member Cunliffe speaks