USD Struggles to Find its Feet as a Currency Safe-Haven.

USD/Dollar: Markets are now pricing in around a 10% chance of a 25 basis points hike by the Fed when it meets next month, down from around a 28% chance a week ago. The greenback’s failure to attract meaningful safe-haven bids despite the escalation in geopolitical tensions possibly indicates that interest rates/monetary policy is a significant driver. In this regard, the key focus is on US CPI data due Thursday.

GBP/Sterling: The British Pound has been making upside progress against the US Dollar and Euro. With regards to GBP/USD, the past 3 trading sessions have produced a gain of about 0.9%. This is marking the best 3-day performance since the middle of July. Recent gains have brought Sterling to the edge of the 20-day Moving Average on the daily chart below. ALl eyes will be on GDP figures out of the UK tomorrow.

EUR/Euro: Against this background of a weaker Dollar, EUR/USD has pushed off the recent multi-month low at 1.0448 and now trades back around 1.0600. The Euro as a currency remains weak and the EUR/USD move higher can be largely attributed to a weak US dollar. The next level of resistance for the pair is at 1.0635. While the chart still looks negative, the recent move higher may have further to go, especially if the pair can break and open above the 20-day sma.

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