As equities are sinking and erasing the early optimism at the start of the week, the dollar is coming back into favour in trading today. We're now seeing the dollar touch fresh highs against the euro, pound, loonie, aussie and kiwi.
Of note, GBP/USD has slipped back below 1.2200 in a fall by nearly 100 pips to 1.2175 - down 0.8% on the day:
As mentioned on Monday and yesterday, the light dollar retreat isn't really technically significant with key resistance at 1.2400 still holding. We're now seeing price run lower as sellers could look to push the agenda back towards key support at 1.2000. There is some minor support for now from the 50.0 Fib retracement level of the swing move higher this month at 1.2170 though.
Meanwhile, EUR/USD is down 0.4% to a low of 1.0470 while AUD/USD and NZD/USD are both down 1% to 0.6895 and 0.6250 respectively on the day. The aussie looks poised for a retest of the 14 June low at 0.6850 with the kiwi set to approach key support near the 0.6200 level.
