EUR/USD is trading back up to 1.0365, up 0.5% on the day, and starting to move back above its 100-hour moving average at 1.0349. The pair is looking for a second straight day of gains, capturing a bounce after last week’s dip to a low of 1.0222. Similarly, GBP/USD is also up 0.5% at 1.2485 as it also challenges a move above its own 100-hour moving average of 1.2482 currently.
But what exactly do these moves mean?
EUR/USD hourly chart
That suggests dollar sellers are trying to regain some short-term momentum to start the new week. A move above the respective 100-hour moving averages but below the 200-hour moving averages (1.0380 for EUR/USD and 1.2512 for GBP/USD, respectively) means that the short-term bias will return to a more neutral one.
Additionally, the dollar is also down against commodity currencies with AUD/USD up 0.6% to 0.6250 and USD/CAD down 0.5% to 1.4370 currently. The latter is particularly interesting to start the week with the crazy side of the equation also in focus as seen here.
For now, the dollar is only rising against the yen, with USD/JPY holding up more than 0.3% at 157.70. This comes with bond yields remaining on the higher side, with US 10-year yields currently seen at 4.623%.
Maybe later in the day/week we’ll see the big currency offset the bonds?