And back the other way we go as the dollar finds a footing and is coming back higher in trading today after the corrective selling yesterday. The drop in the greenback coincided with a relief in broader market sentiment as bonds rallied hard and equities also posted a modest bounce after the BOE announced a QE-style intervention in the gilt market.
However, as we are seeing bonds sell off, the dollar is returning back into favour with equities also pushing lower. The pound is back down by almost 1% on the day now, just below 1.0800 after the earlier run higher in the past day stalled close to 1.0900:
We are now seeing a bit of a battle around the 100-hour moving average (red line) at 1.0790 but I would still pin the current range for GBP/USD around 1.0600 to 1.1000 in the grand scheme of things.
Elsewhere, EUR/USD is down 0.7% to 0.9665 after running into a test of its own 100-hour moving average at 0.9653. Hold above that and the near-term bias stays more neutral but push below that and the more bearish sentiment will resume its course.
USD/JPY is also up 0.4% to 144.70 as buyers are staying in near-term control above its 100-hour moving average (red line) and staying poised to try and retest 145.00.
There is still some trepidation though amid fears of the MOF/BOJ intervention at the figure level.
Looking at commodity currencies, USD/CAD is up 0.7% to just back above 1.3700 while AUD/USD is down 0.9% to 0.6460 on the day currently. This comes as broader market sentiment starts to get a little jittery again as we get into European trading.
