Some profit-taking in the recent dollar rally is the most plausible argument for the price action in FX today as we see the greenback lag across the board.
The dollar has had a stellar month of trading in April so seeing some slight corrective action isn't the most surprising thing. That said, with month-end in focus today, it does make it fairly tricky to interpret the moves.
EUR/USD is up 0.8% to 1.0575 but in the context of the bigger picture, it doesn't mean much:
The pair is still pressured on a break below the 2020 low of 1.0635 and near-term resistance in the form of the 100-hour moving average is only seen at 1.0610. Buyers will have to break past those levels to really justify of any deeper correction.
Meanwhile, GBP/USD is up over 100 pips on the day to 1.2560 levels but it also isn't indicative of much as outlined earlier here.
Elsewhere, USD/JPY did drop briefly below 130.00 but dip buyers are showing their appetite once again by quickly buying up the pair to be around 130.30-40 levels at the moment:
