Kantox currency update: dollar appreciates as market sentiment weakens
The recovery attempts of the Euro and the pound have been short-lived. The dollar and the yen resumed their uptrends on a risk-averse backdrop on Monday, as the investors grow more cautious about the possibility of a Brexit agreement and the European Commission rejected the Italian budget.
EUR/USD: fresh lows at 1.1460. Euro recovery attempt seen last week has been limited at 1.1550, and the pair retreated again on Monday, weighed by doubts about Italy, to hit fresh seven-week lows at 1.1460. As at London market opening times, the EUR/USD is trading at 1.1475.
GBP/USD: pulls back from 1.3100 area. Pound’s rebound from last week lows at 1.2925 was capped on Monday at 1.3135, and the pair pulled back to hit lows right above 1.3000, after two surveys showed that the anxiety about the economic outlook is at its highest levels since the Brexit referendum in 2016. As at London market opening times, the GBP/USD is trading at 1.3080.
USD/JPY finds support at 113.00. The dollar found buyers right below 113.00 after a three-day decline from 114.50before bouncing up on Monday and return towards 113.35. As at London market opening times, the USD/JPY is trading at 113.30.
In the Calendar Today
Datawise, today we have a very light day. Only the speeches of Bank of England’s MPC member Broadbent and the Chicago Fed president Charles Evans, who, in absence of other relevant indicators, might have some near-term impact on the currencies.
14:00 GMT Fed: Evans’ speech
14:35 GMT BoE: Broadbent’s speech