Dollar continues to keep higher across the board in European morning trade
The market is adopting a more risk averse tone as the dollar and yen are firming across the board in the major currencies space. USD/JPY may have fallen to 108.44 – its lowest level since 11 March – but the dollar is firming elsewhere.
NZD/USD has plunged further to fall by 1.7% to 0.7041 as the track towards 0.7000 continues, while AUD/USD has declined by 1% on the day now to 0.7666.
Adding to that, GBP/USD has fallen to a fresh low since 9 February @ 1.3768:
The pair is now threatening support @ 1.3776 and sellers are also looking to keep below a key trendline support stretching all the way back to late June last year.
A break there may yet put the focus back on the 100-day moving average (red line) if the dollar continues to keep this up ahead of month-end and quarter-end rebalancing.
As mentioned earlier here, Treasury yields may be keeping lower but this may not be one of those days that we see the dollar trail and stocks rally because of it. There is a whiff of risk aversion in the market and it is gathering pace ahead of US trading.