European pre-market: Dollar stays softer to start the day

Author: Justin Low | Category: News

The greenback is staying weaker as we begin the session

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ForexLive
But it has recouped some of its earlier losses, with EUR/USD easing from a high of 1.1087 to 1.1040 currently. Meanwhile, USD/JPY is up to 108.65 after touching 108.24 earlier.

Both pairs are at key crossroads though, testing key daily moving averages today.

Overall, the dollar is staying pressured but at least it isn't anything too overwhelming. However, during the course of the week, things aren't too favourable for the greenback:

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It is down by over 5% against both the pound and aussie, with the former bouncing off multi-decade lows while the latter climbs up from its lowest levels since 2002-03.

Looking at the risk mood, Asian equities are mostly keeping a better mood but US futures are keeping lower on the day so far - though off earlier lows. S&P 500 futures are down by 0.5% after having been down by as much as 2% earlier in the day.

For today, the dollar may be keeping weaker as the pressure continues after the Fed action on Monday helped to alleviate financial/credit risks. That is seeing the dollar rush unwind but with the global economic situation still in limbo, there are still lingering concerns.

As things stand, technical levels will do best to guide price action ahead of the weekend.

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