The dollar continues to remain supported in trading this week, as it is a little higher again today. Yesterday’s stronger US retail sales data is trickling down, alongside the geopolitical nuances playing out. Bets on a rate cut have declined significantly, with September’s rate barely priced in at the moment. And we’ve even seen some punters pull back on rate cuts altogether this year.
Just today we saw Japanese officials offer verbal intervention in an attempt to curb the USD/JPY’s advance. And we also have China calling on state banks to step in and bring down the rise in USD/CNY. These are some limiting factors for the dollar, but it nevertheless remains in first position.
EUR/USD is on track to test 1.0600 with few technical hurdles up to potentially 1.0500. Meanwhile, USD/JPY may struggle to reach 155.00 due to intervention risks. But it’s still a pair that looks more poised to hold higher amid rising bond yields, at least for now.
GBP/USD is also at a five-month low, near the 1.2400 mark. Likewise, USD/CAD is at its highest since November at 1.3800 currently. And we also see that AUD/USD is at a five-month low, near the 0.6400 mark.
Once again, the great demise of the dollar has been greatly exaggerated.
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