<p style=““ class=“text-align-justify“>The dollar is struggling across the board today but this looks to be more of a breather to the recovery that started since the latter stages of last week. The mood in the greenback is rather sluggish amid a lack of key drivers, with bond yields also slightly lower today. If you look back to my post yesterday <a target=“_blank“ href=“https://www.forexlive.com/news/the-tide-is-turning-back-in-favour-of-the-dollar-again-20221121/“ target=“_blank“>here</a>, the levels for the dollar are slightly lower but the key technical developments are still holding.</p><p style=““ class=“text-align-justify“>Let’s take stock of the situation for some of the dollar pairs currently.</p><p style=““ class=“text-align-justify“>EUR/USD is up 0.3% to 1.0270 but keeping with the rejection of the 200-day moving average and staying below both its 100 (red line) and 200-hour (blue line) moving averages. That keeps sellers in near-term control unless buyers can look for a push back above the key levels above, now sitting at 1.0304 and 1.0328 respectively.</p><p style=““ class=“text-align-justify“>USD/JPY is down 0.6% to 141.20 but having just broke away from its recent consolidation phase in a push above its 100-day moving average, now seen at 141.06. That also saw buyers seize back near-term control amid a push back above the 200-hour moving average (blue line) and we are seeing the near-term bias stay more bullish for now.</p><p style=““ class=“text-align-justify“>The confluence of the key hourly moving averages at 140.45-55 is still keeping buyers interested and poised for a recovery push.</p><p style=““ class=“text-align-justify“>Likewise, AUD/USD is also keeping a retreat back below its own 100-day moving average, now seen at 0.6689. The near-term bias is also more bearish now amid a push back below both the 100 (red line) and 200-hour (blue line) moving averages and price is staying below that even though the pair is up 0.6% to 0.6640 levels.</p><p style=““ class=“text-align-justify“>The confluence at 0.6671-76 will continue to keep dollar bulls interested after the recovery in recent sessions.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-holzmann-endorses-another-75-bps-rate-hike-in-december-20221122/“ target=“_blank“>Conflicting communique</a> from ECB policymakers will keep things in limbo for now but we should get a better idea of things in the weeks to come, also after the next set of inflation numbers at the end of the month. If anything else, we should get the usual „leaks“ before the next policy meeting in December.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>After a retreat in the risk optimism since the latter stages of last week, we’re seeing a pause today with broader market sentiment slightly on the better side in European trading. Regional indices are up between 0.5% to 0.9% mostly with S&P 500 futures also seen up 9 points, or 0.2%, currently.</p><p style=““ class=“text-align-justify“>Elsewhere, 10-year Treasury yields are down 3 bps to 3.796% and the overall mood is pinning the dollar slightly lower so far on the session. I’ll post some charts up in a bit but the light retreat today in the dollar so far doesn’t really take away the progress made yesterday as outlined <a target=“_blank“ href=“https://www.forexlive.com/news/the-tide-is-turning-back-in-favour-of-the-dollar-again-20221121/“ target=“_blank“>here</a> at the time. Here is a quick snapshot in the meantime:</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Central scenario is not for a global recession</li><li>But a significant growth slowdown in 2023, as well as still high but declining, inflation</li><li>Europe to be hit the hardest amid the worst energy crisis since the 1970s</li><li>Further tightening of monetary policy is essential to fight inflation</li><li>Sees global growth of 3.1% in 2022, 2.2% in 2023, 2.7% in 2024</li><li>Sees US growth of 1.8% in 2022, 0.5% in 2023, 1.0% in 2024</li><li>Sees Eurozone growth of 3.3% in 2022, 0.5% in 2023, 1.4% in 2024</li><li>Sees UK growth of 4.4% in 2022, -0.4% in 2023, 0.2% in 2024</li><li>Sees Japan growth of 1.6% in 2022, 1.8% in 2023, 0.9% in 2024</li><li>Sees China growth of 3.3% in 2022, 4.6% in 2023, 4.1% in 2024</li></ul><p style=““ class=“text-align-justify“>Considering the fallout from the Russia-Ukraine war and surging price pressures across the globe, the outlook presented isn’t so much so a surprise. I would argue the only real thing to watch will be whether or not we will see a significant decline in inflation as is currently being pointed out by almost all quarters of the market. If that doesn’t come to fruition, pretty much everything else gets thrown out the window.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>This will require negative test results within 48 hours for those wishing to enter public places, which includes shopping malls, hotels, government buildings, and factories.</p><p style=““ class=“text-align-justify“>Well, the developments this week certainly is a blow for the hopefuls and the optimists but the general thinking is that China will still eventually move towards some form of pivot away from its zero-Covid policy around the middle of next year. For now, we can only wait and see until then.</p>

This article was written by Justin Low at forexlive.com.