The start of the week was exemplified by a recovery in the dollar but there were questions about any major push higher in the currency as markets seem to lack a certain poise, after the US retail sales and FOMC meeting minutes.

But dollar bulls are not wanting to wait around ahead of the weekend as we see the greenback surge higher in US trading yesterday and that momentum is carrying over to today as well. This comes despite equities seen holding up while the bond market continues to toy around, though 10-year yields are starting to come up today to above 2.91% currently (up over 3 bps on the day).


Going back to the dollar, we are seeing it pull higher and pushing past key technical levels against the euro, yen and pound.

EUR/USD is now down to its lowest levels in a month as it falls back below 1.0100 and looks set for a retest of parity:

EURUSD D1 19-08

Meanwhile, USD/JPY is finally able to come up for air as it firmly climbs above the 135.00 mark and buyers will be setting their sights back on 140.00 potentially next:

USDJPY D1 19-08

Then, we have GBP/USD which is now down to fresh four-week lows below 1.2000 and sellers will be targeting a move back towards 1.1800 with eyes on the year's lows at 1.1759 as well:

GBPUSD D1 19-08