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USD: Greenback Gains as EUR/USD Slips Through Support

USD
  • EUR/USD takes out the Monday low a the USD picks up into the NY crossover - although mirrored move in yields, as the 10y holds close to the day's lows of 4.225%. Today's low equals the 1.0862 print on Jul12 and may slow the pace at which a golden cross forms in DMA space (50-dma rises above the 200-dma), although this still seems inevitable. 
  • Overall currency volumes are muted, with cumulative activity across EUR futures around 15% below average for this time of day. 
  • The uptick in the USD Index helps USD/JPY recover off the day's low of 155.83, however the outlook remains notably negative as markets look ahead to next week's duelling Fed and BoJ decisions. Y155.33/38 marks layered intraday support. 

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