Some potentially constructive moves in the making, with all the majors testing key levels, but led by another EUR/USD push on the upside. Technical resistance at 1.1465-70 was tested but held by a tick before a 1+ cent retracement dragged the USD Index back through the opening levels and onto highs just above those seen yesterday. Cable gains accompanied the early moves, exacerbated by stronger than expected inflation data which saw GBP taking out the highs from last week to top out ahead of 1.4350. A sharp pullback seen here also, dipping under 1.4200, but a little lower down, support from 1.4170-50 looks safe for now.
The commodity rates also enjoyed some significant gains, with the CAD marginally extending the recent 1.2853 base by a few ticks, before reports late in the day that Russia and Saudi Arabia had come to an agreement on an oil price freeze. Nothing confirmed, so CAD has yet to put in a firm test on the October 2015 highs. AUD gains reached .7673, but NZD outperformed by trading through to .6925, though strong resistance seen ahead of the .6966/67 highs from late March. AUD caution ahead of employment data in the overnight session ahead.
USD/JPY now looks to have found a base under 108.00, with intraday resistance at 108.40-45 taken out. More talk from Fed members, including Harker, who is upbeat on the economy and also sees every meeting as live, giving the USD some support, but oversold levels largely behind today’s moves.