There is no let-up in USD strength this afternoon as the greenback continues to see steady short covering after hopes for a major bloodbath like the one we saw in December (when EUR/USD spiked to 1.47) fade like Duke’s chances of winning the NCAA tournament.
USD/JPY has been particularly well bid in recent hours, supported by consistent buying from US asset managers. Looks like the global reflation trade is prompting some money being put to work abroad (or perhaps it is just quarter-end window-dressing). The greenback is more than a full yen above session lows of 97.10, trading now at 98.18. Good resistannce lies at 98.30/40.
