The US jobs report on Friday was a bit mixed but the negative news from Russia halting the Nord Stream pipeline was a key factor that weighed on the euro and pound late on while stocks were rattled as well going into the close. That all helped to keep the dollar in a good spot and the greenback is building on that momentum as we get into the new week.
It may be a US holiday but the technicals will continue to do the talking at the moment. EUR/USD is closing in on 0.9900 and is taking a look at the recent lows once more:
A push below 0.9900 will see sellers gain fresh momentum in the push to the downside and leave open plenty of room to explore towards 0.9800 and potentially 0.9500 next.
Meanwhile, USD/JPY continues to hold above 140.00 as buyers are looking to keep a firm break above the figure level:
That remains the critical level to watch in the sessions ahead and if we do see a bit more of an extension, the 145.00 level will be the next key resistance spot that buyers will be targeting.
As the UK looks to appoint a new prime minister, the pound is languishing with cable falling to fresh lows since March 2020:
It's a rough look for the pound as the cost-of-living crisis continues to tighten the noose on UK households with soaring energy prices not helping. The fact that whoever the new UK prime minister will be, he/she will not have much power to influence the economic trajectory means that the quid is still likely to be headed lower - all things being equal.
The March 2020 lows around 1.1410-45 will be the next key support region to watch and a break below that will open up a slippery slope for the pair to the downside.
