The dollar is the frontrunner on the session, alongside the yen, as we continue to see the same old themes play out before the weekend approaches.
Higher yields, stronger dollar, and more sluggish equities seems to be the name of the game in April and not much will change before the FOMC meeting on 4 May in my view.
EUR/USD is pinned down 0.3% to test 1.0800 again, though recent lows close to 1.0760 might provide some additional support for the pair for the time being. But the downside for the euro is that it is seen struggling despite markets pricing in a more hawkish ECB. I’d argue that there is still the propensity for the central bank to disappoint come July.
Meanwhile, the pound is in freefall after a break below 1.3000 in cable. The next key support is the 50.0 retracement level at 1.2830 and the pair is still holding down 1% around 1.2890 currently.
USD/JPY is keeping rather flattish around 128.30 but that belies the more back and forth action from earlier with dip buyers stepping in after the pair fell to a low of 127.75.
Elsewhere, the aussie and kiwi are also pinned lower with AUD/USD breaking below some key support levels:
Higher yields, stronger dollar, and more sluggish equities seems to be the name of the game in April and not much will change before the FOMC meeting on 4 May in my view.
EUR/USD is pinned down 0.3% to test 1.0800 again, though recent lows close to 1.0760 might provide some additional support for the pair for the time being. But the downside for the euro is that it is seen struggling despite markets pricing in a more hawkish ECB. I’d argue that there is still the propensity for the central bank to disappoint come July.
Meanwhile, the pound is in freefall after a break below 1.3000 in cable. The next key support is the 50.0 retracement level at 1.2830 and the pair is still holding down 1% around 1.2890 currently.
USD/JPY is keeping rather flattish around 128.30 but that belies the more back and forth action from earlier with dip buyers stepping in after the pair fell to a low of 127.75.
Elsewhere, the aussie and kiwi are also pinned lower with AUD/USD breaking below some key support levels:
The pair has fallen past the 50.0 retracement level of its swing higher this year @ 0.7315 and also broken the trendline support during that move. The 200-day moving average (blue line) @ 0.7293 is the next key support level to watch.