The US dollar is facing some selling pressure, with the DXY index reaching its weakest level in over two weeks below 106.0.
Without any major data coming out in the US today, markets will look at the Eurozone for remaining data signals.
EURUSD climbs to 1.0595, below the 1.06 barrier, ahead of Eurozone HICP data for November.
German data on Thursday showed that CPI declined by 2% MoM in November’s flash estimate, matching market expectations.
The HICP inflation report coming out today is expected to show that annual headline and core HICP will increase to 2.3% and 2.8% respectively.
GBPUSD gains positive traction above 1.2700 this morning, reaching a two-week high. US dollar weakness, thin market conditions, and improving risk appetite support the pair’s recovery.
World News
Canadian annualised GDP Q3 data is coming out later today, with a general expectation of 1%, lower than the prior 2.1% from last quarter. After an upsurge from the beginning of the week, USDCAD has slid into negative territory, currently trading below 1.40.
AUDUSD moved up by 0.3% to 0.6518 after Reserve Bank Governor Michele Bullock said that core inflation is “too high” for interest rate cuts in the near term.
