Into the weekend we saw the market continue to push the USD higher, hitting fresh lows in EUR/USD ahead of 1.1100 where we see some heavy bids soaking up the pressure.
There was little to drive the move lower – if anything the slightly lower revision in Q1 US GDP and the miss on Michigan sentiment providing the perfect opportunity for some retracement, but the rejection of 1.1200 higher up guiding the intra-day market to the downside again.
USD/JPY has been pushed back up towards 110.00 as a result, with the positive mood in equities helping to a degree, but the USD perspective the key driver today.
GBP trade has been mixed, with cable following the rest of the pack but EUR/GBP tentatively taking out resistance at .7640.
In the commodity pairs, USD/CAD looks to have based out ahead of 1.2900, but has run into some near-term support in the upper 1.3000s. Oil prices remain well placed for another test on $50.0, so this will hold off any aggressive buying at current levels.
AUD/USD is also on the back foot again, having run into good offers from .7240 on the high side. Along with the NZD, lower levels remain in focus, but achieving them is hard-fought.
Fed chair Yellen set to speak after the London close at Harvard, but expectations on coverage of monetary policy are light.
Looking to next week we have a slow start with both the UK and US off on holiday. At the other end of the week is US non farm payrolls, so plenty of USD to-and-fro likely. Thursday sees the June ECB meeting, but nothing new expected here. PMIs are the other notable data theme running through the week.