The dollar falls to fresh lows on the day
The greenback is suffering across the board as the pressure builds with USD/JPY now breaking below 106.00 as price action tracks below its 200-hour moving average to a fresh low of 105.73 currently.
Elsewhere, the dollar is not finding any reprieve as we see EUR/USD rise to 1.1920, AUD/USD hit a high of 0.7322, and USD/CAD making fresh seven-month lows @ 1.3063.
Of note, the Bloomberg dollar index highlights yet another key technical breakdown for the greenback as we see price fall below its 18 August low to fresh lows since May 2018.
The market is still largely digesting the repercussions from the Fed’s strategy change but I want to say that month-end rebalancing flows are also not really helping to provide much clarity about the exaggerated moves in the dollar right now.
That said, it is tough to argue with the technicals and things certainly aren’t looking good for the greenback across the board.
Cable is making fresh highs of 1.3295 – the highest level in eight months – and there is little in the way stopping the pair from a move towards 1.3400 next should we see price action hold a break above the 31 December high @ 1.3284, if you go by the chart.