The dollar starts to claw back earlier losses on the day
EUR/USD is back down to near 1.0700 after touching a high of 1.0769 earlier as the dollar is gaining some traction across the board to start the session.
The pair is still pressured to the downside as the technical picture continues to side with sellers for the time being. Buyers need to find a daily close above 1.0778 - or preferably above 1.0800 - to establish some near-term momentum to build on an upside move.
Volatility is still wild and kicking, so expect swings like these to be a bit more typical in trading this week. The key question for investors is, have we seen enough central bank and action over the past week to stabilise funding pressures in the greenback?
In the major currencies space, one can make the case to a certain extent as we see the yen retain back its status as the preferred haven in today's risk-off mood.
However, in the emerging currencies space, the dollar is still running riot today:
This shows that the rush to the exits seen over the past two weeks is still continuing and the dollar may find support as the current situation persists.
