Pressure Builds on Dollar

The dollar continues to erode against the majors despite modest gains in U.S. equities, and higher Treasury yields across most of the curve, but the losses have been mitigated by technical support/resistances.

EUR/USD pulled above 1.0450 but is being resisted by the 100-hour moving average at 1.0470. The pair last traded 0.56% higher at 1.0463.

USD/JPY is closing in on 117.00, but like EUR/USD, there is a convergence of support at the 100- and 200-hour moving averages located above 117.00.

The USD/CAD is the exception to the dollar’s performance in respect to the hourly moving averages. The Canadian dollar advanced to 1.330 before retreating back to 1.3350 keeping most of the loonie’s gains intact.

By Caroline Williams