The market is looking to price in five rate hikes now after the more hawkish Fed communique yesterday and that is keeping the dollar underpinned in trading today. The latest nudge higher in the greenback is seeing EUR/USD break from a key technical range since late November in a drop below 1.1200.
The low now touches 1.1160, which is the lowest since June 2020. And more importantly, the chart shows very little else standing in the way of an extended fall towards 1.1000 for the pair next.
Elsewhere, the dollar continues to extend higher against the pound as well with cable sliding by 80 pips to 1.3380:
There is some minor support from the 38.2 retracement level @ 1.3385 but beyond that, cable sellers could be looking to target another retest of the 1.3200 level if dollar sentiment keeps up in the sessions ahead.
