Daily FX wrap: CAD the notable winner of the day as the USD remains pressured going into tonight’s Yellen address in Philadelphia. Energy/stocks supporting – JPY easing off as a result.
A good day for risk sentiment, and this may well be emanating from expectations Fed Chair Yellen’s speech in Philadelphia will adopt a softer tone on rate hikes.
Energy prices have shown decent gains, with a notable move in USD/CAD through 1.2900 and since just below the 1.2850 mark.
Elsewhere, the USD has been similarly pressured, with cable also managing a late recovery despite yet more EU polls showing the leave camp in the lead, albeit moderately so. ITV, TNS and Opinium released their surveys on the weekend, while YouGov and ICM added to GBP woes this morning.
Repeated attempts through 1.4400 failed to break stronger support levels from 1.4350 however, and we are now back in the mid 1.4400s.
EUR/GBP has been less responsive, but has run into strong resistance through .7900. EUR/USD has been well contained in a tight range around 1.1350, but USD/JPY (and cross JPY) have also benefited, spot gaining cautiously through the 107.00 level on the back of a healthier Wall Street showing.
AUD/USD continues to falter ahead of .7400, with NZD a little reluctant to push too hard beyond .6950. Data reads were thin on the ground, but worth noting German factory orders were weaker than expected (-2.0%), but EU Sentix investor sentiment was up on forecasts.