It’s a slow one to start the session as major currencies are not up to much amid a more tepid risk mood as well. The start of the week saw traders trying to claw back the moves from last Friday, before the more disappointing US ISM services PMI put things back in motion. In FX, that since led to a slow grind lower in the dollar to where we are now.
Overall, the changes so far today are light with nothing to shout about whatsoever. In the bigger picture though, the dollar has lost further ground since seeing its momentum quelled here after the poor jobs data at the end of last week.
And the near-term bias in most dollar charts (except for USD/CHF as the franc is hit by Swiss tariffs) are now favouring dollar sellers even if things are keeping quieter today.
- EUR/USD is up 0.6% this week and holds above both its key hourly moving averages (100-hour at 1.1607 and 200-hour at 1.1552)
- USD/JPY is down 0.1% this week and holds below both its key hourly moving averages (100-hour at 147.34 and 200-hour at 148.17)
- GBP/USD is up 1.3% this week and holds above both its key hourly moving averages (100-hour at 1.3337 and 200-hour at 1.3307)
- USD/CHF is up 0.5% this week and holds in between its key hourly moving averages (100-hour at 0.8073 and 200-hour at 0.8082)
- USD/CAD is down 0.4% this week and holds below both its key hourly moving averages (100-hour at 1.3761 and 200-hour at 1.3783)
- AUD/USD is up 1.0% this week and holds above both its key hourly moving averages (100-hour at 0.6491 and 200-hour at 0.6480)
- NZD/USD is up 0.9% this week and holds above both its key hourly moving averages (100-hour at 0.5925 and 200-hour at 0.5922)
All of this reaffirms that the near-term bias is now working against the dollar and looks to keep that way until we get to the US CPI report next week. That’s the key risk event that dollar buyers will be looking for in order to try and muster and turnaround.
This article was written by Justin Low at investinglive.com.