The US dollar is gaining momentum during the European session without any US macroeconomics releases of note for today. The greenback is by far the best performing currency in the G10 with the heaviest gains against the GBP and NZD. There is guesswork that the pound is falling mainly on the back of lingering uncertainties about how long it will take for the UK for forge post-Brexit trade negotiations with the EU. In turn, the NZ dollar is retreating along with falling milk prices.

Looking back to the Asian session one could say that a risk-off mode has receded recently which has been seen in a decline in so-called safe haven currencies such as the CHF along with JPY. Amid exceptionally benign Asian session on the FX market, Reuters unveiled its survey carried out in Japan concerning monetary policy and inflation. According to the survey, as much as 37% of Japanese firms see that the BoJ will need more than 3 years to achieve its inflation target, while 31% deem the target it’s not feasible at all.

The European markets seem to settle down across the board after a few awful events taking place over the course of recent days (incl. terrorist attacks in Spain, the North Korea’s warning towards the US). Another test for stocks is expected to come tomorrow when preliminary readings of PMIs from the European economies are published. At first, let’s begin with a technical analysis. As for now, all major indices are holding more or less similar gains which have been made after the opening.

The German ZEW survey revealed that while companies keep their bullish prospects as for the current situation, they cut back on their expectations with regard to economic growth in the next 6 months. As a result, the euro is edging lower being one of the poorest currency in the G10. It’s worth mentioning that the EURUSD has already approached a crucial short-term support zone which we suggested earlier. The pair has bounced off the support since then. Anyway, the euro is losing against the greenback 0.45%.

Main focus of all who are interested in cryptocurrencies was on Ripple yesterday as it soared substantially getting the fourth-largest market capitalization in the whole digital currencies market. A surge was a consequence of a speech delivered by Singaporean Prime Minister Lee Hsien Loong. He alluded to a need to make e-payments more widespread. He also laid out an exemplary case – China – which had gone the furthest with e-payments.

When it comes to commodities, there have been no larger swings so far. Crude prices are hovering around the breakeven, gold is moving lower 0.5% chiefly due to the stronger US dollar whereas key grains (wheat, corn and soybean) are edging slightly higher as all stay on the cusp of crucial technical levels.

Data-wise is fairly abundant for the Canadian dollar which is going to get a retail sales print as well as the API report on a change in oil inventories.