USD in recovery state with USDJPY leading the move with some risk off trade unwinding after a sign for stock market stabilized and in digest the trade tension with US/China side. Nikkei higher and technical USDJPY break above 111.50 which driven more short term upside momentum despite the technical overbought. And JPY cross also higher with more short covering mainly following USDJPY move.
EUR gradually going down after Trump citing that Germany and EU might raise up NATO defense expense from 2% GDP up to 4% GDP, also criticism on Germany for buying Russian oil and news of ECB split over time for rate hikes on “summer 2019”. But overall impact for EUR rather shallow and short term EUR remain in base building with solid base around 1.15 still remotely quite. With intraday support at 1.1650 and topside resistance at 1.1750-60.
GBP in choppy lower with today UK government publishing Brexit white paper and that set for near term GBP and GBP cross direction.
Commodity currencies ( AUD / NZD / CAD) weakening gradually on broad USD strength and global growth slowdown risk remain to add pressure for those currencies.
Today US CPI, initial jobless claims and stock/bond market as well as FOMC member Kashkari, Harker, ECB minutes will dominate the intraday action.