The US dollar is slipping back after posting significant gains yesterday on the release of the latest FOMC minutes. Some analysts were speculating that a rate cut could be in the offing this year, but the latest minutes made it clear that the Fed would be keeping rates on hold.
Dollar pairs are higher, led by the EUR/USD which outperformed yesterday, falling less than other pairs. The EUR/USD has erased yesterday’s gains and is pushing for the 1.1300 level. The GBP/USD is struggling by contrast, with larger losses yesterday and small gains this morning. The 1.3050 support level is holding for now though. The EUR/GBP is higher for the second straight day, with resistance overhead at 0.8650 the next key test. The EUR/JPY continues to out-perform, with the EUR/JPY pushing through 126.00 this morning.
The EUR/CHF is higher again after yesterday’s reversal, as the euro’s out-performance over the Swissy continues. The USD/CHF managed to rise above 1.0020 yesterday, but there is moderate selling this morning.
The USD/CAD also made strong gains yesterday as the US dollar returned to strength. There is moderate selling this morning though.
The AUD/USD was hit hard yesterday, reversing all of Wednesday’s gains, with only minor buying pressure this morning. The AUD/JPY extending its recent run in line with other yen pairs, with resistance overhead at 79.80.
The USD/JPY itself is building on yesterday’s gains that saw the pair bounce off the 111.00 and approach 112.00 this morning.
Today, we have US Preliminary UoM Consumer Sentiment
The EUR/JPY’s momentum is hard to ignore, making a EUR/JPY trade look attractive.