December 19, 2024 at 08:40AM
USD/JPY may be at the highs for the day at 156.85 but the dollar is lower against the rest of the major currencies bloc at the moment. The greenback is down around 0.3% to 0.4% across the board, so the losses elsewhere aren’t anything too significant as compared to the gains caught during the post-Fed reaction yesterday.
In the case of EUR/USD, the pair is up 0.4% to near 1.0400 but is holding just below the figure level for now with large option expiries in play as noted here. That might help keep a lid on things before we get to the US weekly initial jobless claims later.
Besides that, GBP/USD is also up 0.4% to 1.2620 and USD/CAD down 0.3% to 1.4403 currently. The latter is still seeing a meaningful breakout as it climbed to its highest levels since March 2020 yesterday. On the monthly chart there, a firm break above 1.4100 will mark a significant step in trying to push to test key resistance around 1.4500 through to 1.4600 levels next.
Elsewhere, AUD/USD is also seen up 0.3% to 0.6238 now after having run into a test of the 0.6200 level:
That is a key level on the weekly chart as seen above, having stalled the downside move back in October 2022. That said, the pair is still down 4% this month with sellers well in control amid the very light bounce on the day.
So far, it’s all just a soft retracement to the moves yesterday and we’re seeing a similar mood play out in broader markets as well.
S&P 500 futures are up 0.4% while gold is up 1.1% to $2,616 on the day currently. In the bond market, 2-year Treasury yields are down 2.6 bps to 4.33% but 10-year Treasury yields are holding steadier at 4.52%.
This article was written by Justin Low at www.forexlive.com.