After a bit of a pause in the last few days, the dollar is starting to flex its muscles once again. The greenback is sitting atop the major currencies bloc, now extending gains across the board on the day. USD/JPY already traded a little higher earlier but now other dollar pairs are catching up. EUR/USD is currently seen down by 0.4% to 1.0556:
The pair did break below its 100-hour moving average (red line) yesterday but it owed to risk-off flows, arguably driven by geopolitical headlines. That reversed course later in the day but now, we’re seeing steady flows to nudge the pair back below the key near-term level again.
Hold below that and sellers will reestablish a more bearish near-term bias in the pair. So, that’s a key technical development to be mindful of.
Elsewhere, USD/JPY is now up 0.7% to 155.80 while AUD/USD is down 0.4% to 0.6510 on the day. The dollar is seen firming here as bond yields are also pushing higher. 10-year Treasury yields are now up over 4 bps on the day to 4.42% on the session.
Are we starting to swing back to the post-election momentum after catching a breather?
This article was written by Justin Low at www.forexlive.com.
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