The safe-haven Japanese yen and the Swiss franc held firm against the U.S. dollar today, as risk-averse investors trimmed their exposure to the greenback in the face of a weak performance on Wall Street.
While the US dollar is also considered a safe haven currency, weakness in U.S. equities has tended to undercut its appeal, especially as talk of a peak in U.S. corporate earnings has raised concerns about the outlook for economic growth.
The uncertainty around Italy’s free spending budget has also bred some doubt on whether the European Central Bank (ECB) would be able to raise interest rates next summer.
The British pound is likely to remain in focus as British Prime Minister Theresa May, prepares to address her Conservative Party lawmakers at a private meeting in parliament later today, as she seeks to calm growing tensions over her Brexit strategy.
The latter half of this week sees meaningful data for the US dollar coming up, and although the Aussie dollar can finally expect some momentum this week, the big moves will be happening in the upcoming US sessions.