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The dollar is holding modest gains across the board to start the day, recouping some of its overnight losses following a “softer” US ISM manufacturing report.
By “softer” I mean the headline reading missed on expectations but the details reflect more signs of extended lead times rather than a major tempering of demand.
In any case, the technicals continue to side with the greenback for now with EUR/USD keeping just below its 100-day moving average of 1.2051 after having failed to breach near-term resistance from the key hourly moving averages yesterday.
GBP/USD saw a similar move fail to hold above 1.3900 as price retreats back under the key hourly moving averages (now @ 1.3894-00) to 1.3870-80 currently.
USD/JPY is also picking back up to 109.30 from 109.00 after buyers somewhat defended the 100-hour moving average, now seen @ 109.02.
Elsewhere, USD/CAD is hovering close to 1.2300 again while CAD/JPY is still contesting a push of its October 2018 highs of 89.17-22 going into European trading.
With the market starting to hone in on inflation again, yen and franc pairs may be more interesting to watch in the weeks to follow – should data/risk be supportive.
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