The dollar is sitting lower across the board as we get into European morning trade, continuing the declines from last week. In trading yesterday, the greenback was pushed a little lower but now we’re starting to see some key levels come into play. In particular, EUR/USD is closing in on a key test of the 1.1800 mark.
EUR/USD daily chart
The pair is up 0.3% to 1.1797 currently with buyers knocking on the door of a chance for to open up the next upside leg. That said, large option expiries around the figure level could still help to limit gains on the session – at least before we get to the US retail sales data.
Besides that, USD/JPY is down 0.4% to 146.72 while GBP/USD is up 0.3% to 1.3638 on the day. As mentioned earlier, the downside focus is starting to build against the dollar and that will be a key risk potential if the Fed does lean more dovishly tomorrow.
