The dollar is seen on the backfoot alongside the Japanese yen to kick start the session, as the market seeks a bit of a breather after the beatdown since the latter stages of last week. Equities are on the mend and the bond selloff has also abated, with yields retreating more meaningfully on the session.
This is seeing other major currencies nudge a little higher against the greenback but it doesn't take away from the losses in recent days. Here's a look at EUR/USD for example:
While the euro's plight is not helped by the ECB failing to address fragmentation risks, the bounce off 1.0400 is hardly meaningful and doesn't even wipe out the losses suffered yesterday. There is still some room to maneuver in this latest reprieve but I would pin offers at 1.0485 to 1.0500 to keep a lid on gains on the day.
The technical picture elsewhere remains more of the same with GBP/USD, even though up 0.4% to 1.2185, is still seeing price action dictated by sellers as they target the 1.2000 level. Meanwhile, AUD/USD is up slightly by 0.4% to 0.6950 (the high today hit 0.6970) but unless price gets back above 0.7000, it is hardly anything significant.
