Dollar creeps higher as the push and pull continues on the week

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:

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.