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Dollar Index Pressing Fresh Session Highs In Late Trade

  • The greenback has maintained its upward momentum on Thursday amid higher US yields and moderately weaker major equity indices in the US. The USD index (0.65%) is printing fresh session highs as we approach the APAC crossover.
  • EUR, GBP, AUD and NZD are all showing declines just shy of 1% with most majors reversing the moves seen on Wednesday. This leaves the DXY broadly unchanged on the week and places the near-term focus on Friday’s ISM Services PMI in dictating the greenback’s momentum into the week’s close.
  • Having previously breached resistance, EURUSD has traded back below the 50-day EMA, at 1.0659. The short-term focus on the downside would be a break of 1.0533, Monday’s low, which would resume the bear cycle and initially open 1.0484, Jan 6 low and key support.
  • Relatively outperforming on Thursday is the Canadian Dollar, less affected by the renewed greenback strength. USDCAD is consolidating, however, bulls remain in the driver’s seat for now and sights are on the key short-term resistance at 1.3705, the Dec 16 high. A clear break of this hurdle would strengthen bullish conditions and clear the way for a test and break of the 1.3800 handle.

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