Risk tones are looking more sour on the day but the dollar is seen weakening slightly as we get things going in European morning trade. Part of that i
Risk tones are looking more sour on the day but the dollar is seen weakening slightly as we get things going in European morning trade. Part of that is also stimulated by a move higher in the euro after ECB president Lagarde’s remarks. She mainly reaffirmed a shift in policy stance by the ECB, confirming that the central bank will “most likely” bring rates out of negative territory by the end of Q3.
EUR/USD has moved up to 1.0720, its highest level in one month:
As mentioned earlier here, the technicals point to 1.0800 as being the next plausible upside target for now.
Elsewhere, GBP/USD is also back up to near a test of the highs yesterday at 1.2600 with the 4 to 5 May highs at 1.2634-38 offering some additional short-term resistance. Meanwhile, AUD/USD is also trading up to the day’s high of 0.7090 and NZD/USD also paring its slight losses earlier to 0.6445 currently.
Typically, a more dour risk appetite will see the dollar gain some ground but it looks like other forces are at play here. With the greenback having posted six straight weeks of gains – only ended last week – we might be seeing retracement flows be more dominant for the time being before the focus shifts back to risk sentiment.
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