Kantox currency update: dollar ticks lower in a quiet session
Major currencies remained trading within narrow ranges on Monday, with the dollar ticking lower against a basket of currencies, giving away some of the ground taken on Friday after the strong U.S. Non-Farm Payrolls report.
The euro advanced to 10-month highs against the pound, buoyed by the increasing monetary policy divergence between the ECB and the Bank of England. Last week, The BoE cooled expectations of an interest rate hike over the last months, while the ECB is ready to start reducing its QE programme.
EUR/USD: crawls back above 1.1800. After dropping on Friday to 1.1735 lows on the back of the positive surprise in the U.S. Payrolls report, the pair has trimmed losses this week, returning above 1.1800. At London market opening times, the EUR/USD is trading at 1.1805.
GBP/USD: consolidating losses around 1.3000. The pound has been hit by the dovish message of the Bank of England last week and remains flat, right above 1.3000 after dropping from last week’s highs at 1.3270. At London market opening times, the GBP/USD is trading at 1.3035.
USD/JPY recovery, caped below 111.00. Dollar recovery from 109.85 lows last Friday, has been unable to extend past 111.00, and the pair retreated during Tuesday’s Asian session, to the mid-range of 110.00. At London market opening times, the USD/JPY is trading at 110.55.
In the Calendar Today
Today we do not have any relevant indicator in the calendar. Investors’ focus will be on Central Banks’ speakers later this week and the key U.S. Inflation reading due on Friday.