FX Morning update - US dollar slips back after yesterdays gains
The US dollar has slipped back a little in Asia, after the gains of the past few days, as equities and commodities have pulled back from their highs.The US dollar index has slipped back from highs of 76.33 yesterday to be trading just above the old support level of 75.80/90.
The Sterling rate index has also slipped back from its highs around 79.85 yesterday pushing back from both the 50 and 200 day MA's.
EURUSD - continues to look a little soft but there is scope for a rally back towards 1.4900 as the 4 hourly indicators are starting to look a little oversold. Yesterday's lows at 1.4770 are the key barrier to further declines while a break back above 1.4850, could target a move back towards 1.4920. While below 1.4980 the downside pressure prevails.
GBPUSD - yesterday's high at 1.6440 remains the extent of the sterling rally so far after Friday's declines. While below 1.6440/50 the downside pressure should dominate and a break of 1.6240/50 could then target a test of 1.6000.
EURGBP - having broken below 0.9065/70 yesterday the downside pressure continues to remain the focus. Lows of 0.9027 have been extent of the decline so far. Support at 0.9000 and last weeks lows are the main barrier to further Euro losses.
USDJPY - has lost ground overnight dropping below 91.80, to hit lows of 91.10 overnight. This has been primarily on the back of selling in the EURJPY cross, but while above 90.50 trend line support from the 88.00 lows the upside momentum should remain intact.
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