US equities closed in the negative on the back of some disappointing earnings, Asia followed suit this morning.
The US Dollar showed some signs of consolidation after the 1-day loss seen yesterday where it hit 93.68 on the US Dollar index (DXY) so far today any attempts to pursue higher got stopped before the 94.00 level. The Dollar’s recovery (after hitting lows of 91.91 on the 3rd of May) is showing some signs of doubt as concerns over the strength of the US economy remains very much on investors’ minds.
USDJPY is currently trading at 108.77 easing from yesterday’s 2-week highs of 109.37, the currency pair has mostly been confined to a range of 108.20:109.37 since last Tuesday. The Yen had recently weakened on government rhetoric on the possibility of intervention in order to curb the gains.
Later in today’s economic docket we have scheduled the BoE’s rate decision and Asset Purcahses Target – no change is expected. GBPUSD is currently trading at 1.4442.
