It is a week with a lot of waiting if you’re an FX trader. There hasn’t been much conviction overall, as broader markets seem to be waiting on the big data next week before acting up. The push and pull in the bond market hasn’t helped whatsoever in that sense. So far today, major currencies are once again little changed with the dollar keeping steadier.
It has been that kind of week with little firm direction as traders lack any real impetus. The Japanese yen is slightly weaker on the day, after some dovish BOJ remarks here. However, the January high in USD/JPY at 148.80 is still holding for now. And that is helping to limit any major upside momentum in the pair. That is not to mention the indecision in the bond market this week.
Besides that, GBP/USD has officially returned back to its 1.2600 to 1.2800 range. The onus is now on sellers to try and wrestle back the momentum to push for a downside move once again.
Then, there is EUR/USD which has gradually moved off its December low of 1.0723 to 1.0780 levels now. Of note, the pair is inching towards a test of its 100-day moving average of 1.0786. That will be one to watch in terms of technical significance in trading this week.
Likewise, AUD/USD is also running up against its own 100-day moving average of 0.6533 since yesterday. Sellers are still defending that for now and that retains the more dovish bias in the pair – at least for the time being.
