If we look into the economic calendar for today, there is nothing coming out for the UK. Consumer confidence from Germany was rolled out this morning and is almost unchanged from last month. While on the topic, we do have consumer confidence from the US in the afternoon too. Highlights for this week will be German retail sales on Thursday and PCE (Personal Consumption Expenditure) for the US.
Recently we have seen volatility on USD-pairs, with SNB (Swiss National Bank) surprising markets with a rate cut last week – that generated USD strength. We did see the USD-index, DXY, fall when the Asian market open on Tuesday. Seeing USDCNY reaching a rate of 7.2, Chinese government have intervened and instructed Chinese banks to sell its USD positions to stabilise the Chinese Yuan. We could see additional intervention from Japan as they like the exchange rate to not break the 150 levels. Presently sitting at 151.23, it could be a sell-off from Japan too, that would contribute to additional USD weakness.
