Pound continues to weaken across the board this morning.Against the euro the pound has already shed over 1% throughout yesterday’s session and the euro continues to push the EURGBP higher, currently trading at the price of 0.8731 – currently marking 2-month highs. GBPUSD is not far off from were the session opened 1.2160, but still the USD has a small lead on the pound.
The dollar nudge higher in Asian trade on Monday after data showed signs of wage pressure in the December U.S. jobs report which were enough to lift Treasury yields, but bulls remained cautious of a sudden setback following last week's bout of profit-taking.
The Dollar continued to back off from 14-year highs as it closed yesterday’s session at 101.40, shedding as much as 1% throughout Thursday’s session (based on the DXY). A number of market headwinds may be into play at this stage; we approach the health check of the US labour market as we move into US Nonfarm payrolls data later today, we’re experiencing some unwinding of the “Trump Trade” and yesterday ADP employment change (widely considered a proxy of NFP) was softer than expected.
The US Dollar re-tested its end of year highs yesterday with the US Dollar Index (DXY), an index which measures the value of the USD against a basket of foreign currencies, reaching out to session highs of 103.82 – the highest since the year 2002. The USD enters today its third consecutive day of gains for 2017 and is currently trading at the price of 103.32.
The US dollar crept higher on Tuesday as the prospect of rising US interest rates this year kept sentiment bullish, while a surprisingly upbeat reading on Chinese manufacturing gave the Aussie dollar a lift.