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Dollar running to new highs as London/Europe exits for the day | Forexlive

As the London/European traders look to exit for the day, the US dollar is pushing to new highs versus all the major currencies. The USD is the strongest of the majors, rising the most vs the JPY and the NZD (1.67% and 1.58% respectively)

The move higher comes after stronger ISM services data, and comments from WSJ’s Timiraos that the Fed 5% ceiling may have to be higher as a result of higher wages.

The US yields have moved higher with the 2 year up 7.8 bps. The 10 year is up 8 bps to 3.580%

In Europe, the major indices closed mostly lower.

  • German Dax, -0.56%
  • France’s CAC -0.67%
  • UK’s FTSE bucked the trend with a 0.15% gain
  • Spain’s Ibex -0.15%
  • Italy’s FTSE MIB, -0.30%

Looking at the major currency pairs:

  • EURUSD: The EURUSD is down testing the November lows between 1.04806 and 1.0496. The low price reached 1.04896 so far. Will below and traders will target the rising 100 hour moving average at 1.04575. The 38.2% retracement of the move up from the November 21 low comes in at 1.04521.
  • GBPUSD: The GBPUSD is moving closer to a cluster of support defined by the 38.2% retracement of the move up from last week’s low. The low comes in at 1.21739. Below that is the rising 100 hour moving average at 1.21505 and the 200 day moving average 1.21416. On Friday, the price decline off the jobs report dipped below the 200 day moving average briefly but quickly reversed back higher. Moving below that moving average level would disappoint the buyers on the break. The move above the 200 day moving average last week was the first since September 2021
  • USDJPY : The USDJPY mood above its 100 hour moving average at 136.44 to a new intraday high at 136.664. The 50% of the trading range last week is at 136.750. Traders will be looking for the 100 hour moving average to hold support in the short term. Stay above is more bullish.
  • AUDUSD: The AUDUSD has run lower and in the process fell below its 100 and 200 hour MAs. A swing area in the 0.6716 to 0.6729 has also been broken and the 50% of the move up from the November 21 low. The 100 day MA at 0.6686 is the next key target. A move back below the 100 day MA would disappoint the buyers (although the pair had a number of breaks and fails above in November). The AUDUSD moved to a new cycle high in the Asian session today before rolling over and breaking below support targets.

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