USD extends losses against most major pairs, as year-end position adjustments come into play
And thin liquidity is not exactly helping by exacerbating the dollar's weakness. CHF leads the way as EUR/CHF selling contributed to the CHF gains in the last two days.
If you look at the hourly chart above, EUR/CHF hit the highs posted on 26 December yesterday before taking a tumble and it really hasn't looked back since as sellers prevailed. The topside move today was capped by the 100-hour MA and while the 200-hour MA held on as a support level for a bit, it eventually gave way and the pair is heading lower.
Meanwhile, USD/JPY pared some of its losses on the day as US 10-year yields recovered 2bps to 2.43% - as German bunds lead declines in Europe, dragging US Treasuries along with them.
The AUD lost some ground against the USD (but still higher on the day), as AUD/NZD selling at the 100-day MA is capping AUD gains - as it has done so over the past two weeks.
Other major currencies like the EUR, GBP, CAD, NZD maintained their gains against the USD.
In other markets:
- Gold is up by 0.35% to $1,291.77
- WTI crude is down by 0.12% to $59.57
- European equity markets are mostly lower on the day (UK's FTSE is still bucking the trend as it hit fresh record highs again)
- US 10-year yields is up 2bps to 2.43% after being down for most of the day
- Bitcoin is down by 7.4% to $14,061
