The dollar index made new 2023 highs as EUR/USD fell below major support and the Fed's higher-for-longer rates got, while and dour reinforced the impression that the might not see any more rate hikes in this cycle.
A close above could pave the way to major retracement and weekly cloud top resistance, both at 107.17.
fell 0.46% and broke below the 38.2% Fibo of 2022-23's huge 0.9528-1.1276 recovery at 1.0608, as well as 1.0600 figure support.
Technicals and the bearish bias derived from the latest Fed and ECB guidance, as well as U.S. economic data outperformance, could see supports either side of 1.0500 tested next.
Though off August's most negative levels, 2-year bund-Treasury yield spreads at -1.9% remain a major weight on EUR/USD, particularly with the ECB and Fed guidance suggesting less scope for spreads to tighten anywhere near as much as had been expected in 2024 before the central banks' meetings.
USD/JPY rose 0.28% as the 8bp rise in 10-year Treasury yields and Treasury-JGB yields spreads got prices almost up to dailyat 149.
Kazuo Ueda sent mixed messages at a meeting with business leaders in Osaka on Monday.
He warned there was "very high uncertainty" over whether companies would continue raising prices and wages, stressing anew the bank's resolve to maintain ultra-loose monetary policy.
That mostly reiterated Friday's BoJ meeting conclusions.
But Ueda also said the bank would work closely with the government regarding risks from
That as the market ponders MoF intervention risk near or above 150 and on the approach to 2022's 32-year peak at 151.94.
fell 0.2%, continuing its recent slide that was hastened by the BoE last week ending its streak of 14 consecutive rate hikes after the Fed's hawkish hold.
USD/CNH rose 0.23% as property sector worries and higher bond yields in the U.S. and Europe took a toll on global demand prospects and high-beta currencies.
Tuesday features U.S. consumer confidence and housing data, with some attention paid to a potential U.S.that Moody's said would be "credit negative."
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