There was only a brief reprieve yesterday, before Fed policymaker Brainard's comments helped to switch the mood back in favour of risk trades. The dollar is now stumbling to fresh lows post-CPI as the selling from last week carries over. EUR/USD is now up to its highest levels in over four months now:
The pair is now up to 1.0395 with buyers eyeing the 200-day moving average (blue line) at 1.0427. That marks the next key resistance point for the pair and a critical juncture as to whether or not the dollar selling will extend.
GBP/USD is also up 0.5% to above 1.1800 while USD/JPY has tumbled from 140.20 to 139.20 in rather quick fashion. The latter is still keeping below its 100-day moving average as highlighted yesterday here.
Meanwhile, AUD/USD is up 0.8% to 0.6750 levels as buyers look to seal a break above the 100-day moving average (red line):
As mentioned at the end of last week, the latest selling in the dollar still has scope to extend and that remains the case as we get settled into the new week.