CHF

Foreign exchange markets are trading on a mixed footing this morning as the US government data backlog begins to clear and investors brace for a series of critical corporate earnings releases. Equity futures are pointing to a firmer open (although this may be a Pavlovian response to a ten-week winning streak on Mondays), and benchmark Treasury yields are creeping up ahead of appearances from Fed officials including Governors Jefferson and Waller later today. The dollar is outperforming pro-cyclical currencies like the Australian and Canadian dollars, holding its own against the British pound and euro—which are clinging to technical resistance levels...

The US dollar is gaining as investors turn more cautious ahead of a raft of important economic data releases and central bank decisions through the remainder of the week. In a pattern familiar to aficionados of the ‘dollar smile’ theory, the greenback is climbing on continued outperformance in the US economy, a firming in rate expectations for the Federal Reserve, and a dimming growth outlook in other major economies. The Japanese yen and British pound are treading water against a resurgent Swiss franc, and the Canadian dollar is coming under sustained selling pressure ahead of tomorrow’s Bank of Canada decision,...