Lower rates weighed on the dollar yesterday but are not really working against the greenback in trading so far today. In part, I would say the softer mood in equities is helping to reaffirm a more risk-off approach and that is perhaps helping to see the dollar nudge a little higher now.
EUR/USD is down 0.2% to 1.1018 with GBP/USD keeping a rejection from 1.2500 earlier to 1.2450 at the moment. The former is sandwiched between large option expiries with the highs also limited around a large one at 1.1050-60. Meanwhile, here’s a snapshot of price action in the latter:
GBP/USD hourly chart
As you can see, price is slowly inching towards the confluence of the 100 and 200-hour moving averages at 1.2442-43. Stay above and buyers will keep near-term control but break below and sellers will take charge of the near-term momentum instead.
Elsewhere, AUD/USD is down 0.6% to 0.6655 as the aussie stays pressured amid a softer stance in risk trades. Oil is down 0.7% to $78.18 and that is helping USD/CAD climb up 0.4% to 1.3590 as well. And we are seeing gold tick lower as well by 0.3% to $1,982 as sellers continue to contest daily support at around $1,981 since last week.