The US dollar is nipping back slightly this morning after cementing its position as the power currency of the moment. The Greenback is stretching to test the highest levels seen since December.
Dollar pairs sunk heavily yesterday, led by the AUD/USD which plunged to just above the 0.7000 level, with small gains this morning.
Not to be outdone, the EUR/USD collapsed to its lowest levels for the year and is now trading just above the 1.1150. The EUR/CHF reversed in spectacular fashion, slipping from 1.1450 to 1.1380. The EUR/GBP also reversed yesterday to undo the week’s gains and slip below the 0.8650 level in unchanged trading this morning.
The pound also reversed against the dollar yesterday and is unchanged at support around 1.2900 this morning. The GBP/USD has now dropped for seven straight sessions.
The USD/CAD is slipping back this morning after two days of solid gains, while the USD/CHF is unchanged so far, but holding above the 1.0200 support level.
The USD/JPY is reversing as the dollar loses ground to the resurgent yen. The pair remains tied to the 112.00 resistance level though.
Across other yen pairs, the AUD/JPY is lower again, but holding above 78.50. Meanwhile, the EUR/JPY is lower for the third straight day, while the GBP/JPY continues weaken.
Spanish unemployment rate is at 07.00.
US Core Durable Goods are at 12.30.
The euro continued to struggle yesterday, while the yen is hitting its stride. The EUR/JPY is starting to turn and there could be further downside from here.