The slight pushback from Fed chair Powell yesterday may have something to do with it but the flows today are not reflecting a coherent theme when viewed against broader market sentiment. Equities are lower while Treasury yields are mixed, and that is failing to offer much for traders to work with at the moment.
The dollar is trading at the lows for the day across the board, as the key levels highlighted yesterday are all still in play right now (renamed for relevance):
- EUR/USD near its 100-day moving average
- USD/JPY at its 200-day moving average
- GBP/USD break of January lows but now reverting back to its 200-day moving average
- USD/CHF coming up short at its 100-day moving average?
- USD/CAD holds break above 1.3700 post-BOC
- AUD/USD hanging on at the 21 November lows
- NZD/USD still under key daily moving averages and 38.2 Fib
It's hard to really jump in to say that the dollar rally on Tuesday has peaked this week, especially since markets are looking to the US jobs report tomorrow as being one of the major hurdles to get through before the FOMC meeting later this month.
That's not making it easy to really interpret the moves today I would say. Can Friday come already?