Forex News

Dollar sinks as the post-CPI selling continues

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It’s a brutal day once again for the dollar as it is seen down over 1% against the likes of the euro, pound, aussie and kiwi today. The post-CPI rally in markets is continuing and that is weighing heavily on the dollar once again. EUR/USD has now run up to its 200-day moving average (blue line) and the resistance point will be a key one to watch in gauging if the pair has the appetite for an upside leg extension:

The 200-day moving average rests at 1.0427, so keep an eye on that ahead of the daily close.

Meanwhile, GBP/USD is also surging up by over 1% to fresh highs in seven weeks:

The pair is trading to 1.1870-80 levels now as buyers solidify the break above the 100-day moving average (red line) and key trendline resistance (white line) above 1.1600. A move towards 1.2000 looks more than likely before stalling.

Elsewhere, USD/JPY is down 0.5% to near 139.00 as the downside pressure stays the course while AUD/USD is up to 0.6770 and looking towards extending the upside push above its own 100-day moving average here.