European indices are keeping gains near 1% while S&P 500 futures are up 16 points, or 0.4%, and that is helping with the overall mood in markets so far. In turn, the dollar is the laggard but the losses aren't really too overwhelming. EUR/USD is up 0.2% to 1.0860 levels but is in the hunt of a fourth straight day of gains:
The rebound this week comes after the pair tested its 200-hour moving average on Friday last week but in the bigger picture, this is an extension of its rebound from the 100-day moving average (red line) earlier in the month. Buyers will still need to crack key resistance at 1.1000 to really justify a further upside move though, but at least they are keeping the bullish momentum going for now.
Meanwhile, USD/JPY is down 0.1% to 132.70 but is at least off its earlier low of 132.20 during the session - which came after the Spanish inflation data here as bond yields sagged. But as yields are recovering, the pair is also getting a bit of a lift to near unchanged levels on the day currently.
Then, we have GBP/USD which briefly hit eight-week highs just above 1.2360 though the technical picture remains somewhat confined still as highlighted here.
Elsewhere, USD/CAD is slipping further to 1.3530 levels amid higher oil prices with the pair now gyrating towards its 100-day moving average seen at 1.3516 at the moment.
The antipodeans are sitting a little higher but they aren't really going anywhere as well with AUD/USD stuck just below its 200-day moving average (blue line) near 0.6700 now after bouncing off its November lows:
NZD/USD is finding things even more difficult as it is sandwiched between its 100 (red line) and 200-day (blue line) moving averages:
With month-end trading also a key focus point in the sessions ahead, we are still awaiting firmer moves in the dollar to gather more conviction on the next big trending move.
