The push and pull continues ahead of Jackson Hole
The greenback is holding a slight advance in European morning trade, keeping higher across the board as risk trades are also seen pulling back after a three-day rally.
There were hints of that in Europe yesterday before US traders stuck with the early week momentum and we’re getting a whiff of the same kind of action so far today.
USD/JPY is up near the highs for the day at 110.20 while GBP/USD is down a little to 1.3740 from around 1.3760 at the start of the session.
Commodity currencies are also lagging against the greenback with NZD/USD down 0.3% to fresh lows at 0.6950. The upside move seems to have stalled around the 61.8 retracement level at 0.6980 but buyers are still keeping near-term control:
Price action sits firmly above the key hourly moving averages at 0.6905-12 so even with the light pullback in dollar trades so far today, it isn’t amounting to much.
Looking elsewhere, risk is also seen pulling back slightly with European indices down 0.2% to 0.4% while S&P 500 futures are down 0.1%. 10-year Treasury yields are up 0.8 bps to 1.353% as the bond market keeps steadier for the most part today.
