The US Dollar came under renewed pressure after it became clear that US President Trump’s healthcare reform is dead. This makes it unlikely that his economic reforms will pass either. EUR/USD rallied above 1.15 and there is little resistance now until 1.16. GBP/USD however, is struggling with resistance at 1.31. The pair might remain quiet ahead of today’s inflation release, which could determine its short-term direction.
USD/JPY tested 112 and bounced off it. Support is also seen at the 200 DMA at 111.80. A dovish Bank of Japan and risk-on sentiment in markets have kept the USD/JPY supported so far. However, a daily close below the 200 DMA would signal that further losses are ahead.
AUD/USD has reached fresh highs and is likely to test 0.80 soon. Commodity prices have bounced and recent Chinese econ data has been strong – two factors which have kept the AUD bid. Meanwhile, NZD/USD came under pressure after weak inflation data, but managed to retrace the losses amid broad USD selling.
09:30 BST – UK CPI
10:00 BST – German ZEW Economic Sentiment
10:00 BST – Euro Zone ZEW Economic Sentiment
14:30 BST – Bank of England Governor Carney speaks