There is a chink in the armor for the US dollar after its drop yesterday, with EUR/USD now pushing above its 100-day moving average for the first time since February this year. That is a significant technical development, though buyers are cautious about pushing the agenda too quickly with the end October highs at 1.0087-93 still holding.
Elsewhere, the narrative for the dollar remains more or less the same i.e. consolidation leaning towards the weaker side after its recent highs last month. The changes so far and the ranges for today also leaves a lot to be desired:
There is a less than 0.1% change mostly across the board and that fits with the more tepid risk mood in general as markets await the key events from the US. The results of the midterms are still ongoing and we also have US CPI data tomorrow.
S&P 500 futures are down just 4 points, or 0.1%, indicating a lack of appetite while 10-year Treasury yields are up 1 bps to 4.138% - showing some steadiness after a modest bid in bonds yesterday.
