The dollar is now rallying as we enter European trading, as the back and forth between the major currencies continues. EUR/USD was down 0.2% to 1.0945 with GBP/USD down 0.3% to 1.2410, with GBP not helped by slower UK retail sales data here.
Elsewhere, AUD/USD fell 0.7% to 0.6690 as the pair remained under pressure rejecting its 200-day moving average at 0.6741. Next, we also have gold which is down about 1% on the day as the price continues to trade in and around the $2000 level all week. It is worth noting that the daily support around $1,981 is holding for the time being as seen below:
Gold Daily Chart (XAU/USD)
The dollar’s advance comes as we see equities slowing down a bit but at the same time, treasury yields remain lower across the curve. This in turn keeps the JPY somewhat bought as well, with USD/JPY down 0.3% at 133.85 on the day.