Only the kiwi is performing weaker than the greenback so far today
The dollar isn't looking too hot as we await European traders to enter the fray, failing to extend yesterday's gains so far in trading today. There's a couple of market themes at play still but overall there's nothing to suggest that the dollar rally overnight should derail just yet. Let's take a look at what's happening in the currencies space currently:
- CAD extends gains after BOC decision to drop "gradual" approach
- JPY stays bid as Asian equities slump, Nikkei down 3.4% currently
- AUD holds steady as shorts covered, iron ore prices hit fresh seven-month highs
- EUR pivots around 1.1400 against USD ahead of ECB meeting, Draghi
- GBP remains tepid after Theresa May fended off Tory critics in parliament meeting
- No-deal Brexit preparations set to intensify, a signal that negotiations aren't too good
- NZD weighed lower after poor trade balance data
Looking at that, there are a couple of reasons why the dollar isn't leading the rest of the major bloc to begin the day but it owes little to the greenback's weakness but more of a reason for other currencies to pull slightly ahead as we approach European trading.
The major focus of markets will still be on risk sentiment as well as the ECB meeting later, but expect the usual suspects to chime in as well i.e. Brexit, Italy.
