Dollar remains in favor as stocks tumble
S&P 500 futures are now down 16 points, or 0.4%, with major European indices posting losses of around 1.5% to 1.8% at the moment. The sour mood keeps the dollar underpinned, with the currency stretching its gains now on the session.
EUR/USD is down 0.2% to session lows at 1.0750, with significant option expiries now in play. Meanwhile, GBP/USD has erased its jump Prior post CPI and 200 hourly moving average rejection saw the pair fall further to 1.2370 currently:
GBP/USD hourly chart
These are the lowest levels in a month for the pair with the April 10th low at 1.2344 as the technical midpoint ahead of a potential drop towards the 100-day moving average at 1 ,2280.
Elsewhere, the dollar also maintains a decent lead against the commodity currencies with USD/CAD up 0.4% near 1.3560 and AUD/USD down 0.7% at 0.6565 – testing the lows highlighted here.
NZD/USD is however the biggest loser as the pair is down almost 2%, building on the losses after the RBNZ earlier. The pair is now down to 0.6120 and looks set for a test of key support at 0.6100-11 next.
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