The weak dollar begins its fourth day before the announcement of US GDP and the FOMC tomorrow. Some disappointing recent US data have led investors to reconcile with the possibility that the Fed could delay rate hike.
The preliminary Q / Q UK GDP is expected to have fallen to just 0.5% below 0.6% in the previous quarter. The GBP seems slightly in the green against the main counterparts and is trading at 1.5254 against the dollar.
The UK economy performed better than expected throughout 2014, but analysts expect a moderate figure (GBP appreciated by 5.72% against a basket of currencies).
The Aussie was among the biggest winners this morning as the return ladder expectations that the RBA may be cutting rates. The reaction comes from the comments of Stevens RBA Governor Stevens pointed out the factors that make rate cutting more difficult to adopt.
Kiwi is under pressure
The biggest loser among the G-10 motto since the opening of the session is the kiwi. The NZD lost no less than 1.15% as a result of the poor employment figures released last night.
The dollar is not far either, it seems that the greenback has entered a correction phase after long months of sustained rally. The index dollar (DXY) trades lower and gently approaches 94.50 which is a key support level.
The EUR / USD is back above 1.12 driven by the weakness of the dollar while the USD / JPY drops below 120.00 driven by massive selling orders from large macro accounts.
Today the economic calendar will be rich in risky events, in the morning the PMI figures for the euro area and the UK will be published and later in the afternoon we will have the US ADP figures as well as Yellen’s speeches (FED) And Lagarde (IMF) in Washington.