The market continues to digest the post-Fed reaction
Major currencies are little changed on the day after the dollar swung higher again yesterday as the post-FOMC reverberations continue to play out.
EUR/USD saw a fall below its 200-day moving average with the drop stalling around 1.1900 while GBP/USD stumbled to 1.3900 as sellers pushed for a close just below the 100-day moving average for arguably the first time since last July.
Meanwhile, AUD/USD also sank to just below its own 200-day moving average and trades below both key daily moving averages for the first time since May last year, with the 0.7500 level being eyed next by sellers.
In short, the dollar has gained a new lease of life and is pushing the agenda technically - even in gold - but with Treasury yields showing little follow through, it remains to be seen how much of the latest move can be sustained.
That said, it is tough to argue with the charts on the other hand - especially after having seen FX consolidate and coil up for the past 4-5 weeks prior.
Looking ahead, it is still all about the post-Fed digestion with little on the agenda to really shake things up.
0600 GMT - Germany May PPI figures
Prior release can be found here. Producer prices are expected to keep higher as supply disruptions continue to boost input cost inflation globally.
0600 GMT - UK May retail sales data
Prior release can be found here. UK retail sales should see some added improvement in May as looser restrictions take effect with hopes that activity can be sustained through to the summer months as well.
0800 GMT - Eurozone April current account balance
Prior release can be found here. General indication of flows in/out of the euro area economy. A minor data point.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
