It’s not looking too good for the dollar right now with USD/JPY pushing back past below 149.00 and down 0.4% to 148.87 currently. It comes as yields are starting to tilt a little lower on the session and we are also seeing broader moves extend elsewhere, especially in the antipodeans as noted here. Adding to the dollar misery is the extension higher in GBP/USD to its highest since early September:
GBP/USD daily chart
The pair shook off its 100-day moving average (red line) and the 1.2500 mark and is now looking to scale new heights in the latest technical break higher. This upside rally has legs to it and could even target the 1.3000 mark if the bond market plays ball.
The other good news for the pound recently is that the UK economy is not finding itself in a much worse spot than earlier anticipated in Q4 and that is helping the BOE’s case of keeping rates higher for longer.
But when you put the GBP/USD chart alongside all the others at the moment, there is evidence of a dollar breakdown and that is the stronger force at play currently I would say.