USD/JPY continues to do its job as buyers gradually push the limit above 155.00 ahead of tomorrow’s BoJ. The pair is up 0.2% at 155.63 currently, with the line in the sand starting to shift. Elsewhere, the dollar is down slightly, but nothing too exceptional so far. GBP/USD is up 0.3% to test familiar resistance at 1.2500, so this is at least a notable technical development:
GBP/USD Hourly Chart
The pair sees price action holding above the 100 (red line) and 200 hourly moving averages (blue line), reaffirming at least a more bullish bias in the near term. But buyers aren’t exactly running away, with the dollar still rising this month after initial gains in previous weeks.
The case is similar for most dollar pairs, even with EUR/USD currently up 0.2% at 1.0715. USD/CAD is slightly down 0.1% at 1.3688 while AUD/USD is up 0.2% at 0.6513, with the 200-day moving average at 0.6526 still limiting gains, as we saw here yesterday.
The dollar’s slightly weaker performance comes despite stocks falling, with technology stocks particularly lagging. The disappointment of Meta’s profits revives concerns about big technologies and this weighs on the mood. S&P 500 futures are down 0.7% while Nasdaq futures are currently down 1.3%.
In the bond market, 10-year Treasury yields fell only 0.8 bps to 4.646% – not much changed over the week.
All eyes will be on US data over the next two days. This will likely help set the tone for the rest of the week alongside the BOJ tomorrow.
cnbctv18-forexlive
