Forex today: dollar keeps getting it and the euro bulls love it
The dollar has been offered again in the US session with the downside propelled by the US ADP survey miss for July arriving at 178K vs 185k.
The nonfarm payrolls are at the end of this week, and if this is a prelude to that, then the dollar could be in for further selling pressures with the DXY already at yearly lows at 92.58 the low, down -0.21% at the time of writing. However, US ten years are back above water on the day, up +0.39% but have been in a range between 2.2407% - 2.2817%. The yen was on the backfoot for the majority of the session, confined though to a 38-pip drift lower vs the greenback. Sterling was consolidating on the 1.32 handle and left the impressive moves to the euro. The euro rallied and broke onto the 1.19 handle for fresh yearly highs and highest levels since Dec 2014 at 1.1910 before profits were scraped-up as the dollar recovered some ground.
Elsewhere, the risk mood was in recovery mode, commodities were higher with WTI rallying and metals stabilising after yesterday's fallout. WTI scored a high of 49.75 and USD/CAD fell to 1.2531 the low before the dollar bounced back for a positive close on the day. The Aussie's bullish attempts to close above the 50 hourly sma at 0.7981 failed at highs of 0.7993 and the bears took back control with a shallow rebound in the greenback. The Kiwi spent the early half of the day in a minor recovery from 0.7410 to 0.7474 the high before selling ensued until the 0.7430's. Gold was good two-way business between $1,262.83 and $1,273.01 the high governed by the dollar and rates.