As we enter the final trading day of 2018, the dollar is slipping back, but remains firmly in the driving seat of currency moves.
The big driver in the short term is the Japanese yen, with the USD/JPY dropping below the 110.50 support level after Friday’s plunge. The EUR/JPY also remains close to the lows, following Friday’s selling.
There are two contrasts with the GBP/JPY and AUD/JPY on the rise this morning.
The dollar pairs are mixed, with the EUR/USD making small gains, while the AUD/USD and GBP/USD are rebounding after gapping higher.
The USD/CHF is rebounding after a test of the 0.9850 level yesterday, so far the support line is recovering.
The USD/CAD is set to end the year at the highs as oil prices drag the Canadian dollar lower.
Today is a bank holiday in Germany.
Gold remains on a strong run from the Summer lows and with multiple risks ahead in 2019 from Brexit and Trump, it could pay to bet on further highs from here.