Dollar gains further to start European morning trade

The dollar is continuing its good form after the US CPI data yesterday as it is running gains across the board. USD/JPY is up over 1% on the day to fresh highs in two decades, approaching the 139.00 mark:

There are large expiries at the figure level which could hold off buyers for now, alongside offers and some light psychological resistance. However, the pair still seems destined for a push towards 140.00 next eventually.

Elsewhere, EUR/USD is being pressured close to parity again with the low touching 1.0005 on the day. GBP/USD is also down 0.5% to 1.1830 as the downside pressure stays the course this week. It is all about the dollar at the moment and with a 100 bps rate hike by the Fed on the table now, it is still tough to find better alternatives to the greenback.

Looking over to commodity currencies, USD/CAD is up 0.4% to above 1.3000 again and AUD/USD has seen its early advance falter with a drop by 0.1% to 0.6750 at the moment.