The changes among major currencies are relatively light for now, as traders are still trying to make sense of the overall mood in markets since Friday. There was a rush to safety at the end of last week and that underpinned the dollar but we are seeing a slight retracement of that with gold lower and yields higher today. For the dollar, that is seeing it just mildly softer at the moment.
EUR/USD daily chart
EUR/USD is up 0.2% to 1.0528 as buyers hold on to the 1.0500 mark, with large option expiries at the figure level also in play today. But in the bigger picture, topside resistance at the 23.6 Fib retracement level at 1.0643 is still limiting gains for now.
Meanwhile, USD/JPY is flattish at 149.55 as dollar bulls stay poised to try and test the BOJ’s mettle again after the intervention at 150.00 has been largely brushed aside.
GBP/USD is little changed, up 0.1% to 1.2157 on the day while USD/CAD is flattish as well at 1.3650 at the moment. The aussie and kiwi are sitting higher, with the latter up 0.6% to 0.5920 currently but that owes more to a gap higher after the NZ election results.
Overall, it is looking like traders are still observing a more tentative mood and awaiting further developments – or perhaps the lack thereof – from the Israel-Hamas conflict.
The fact that gold is down and bonds are also offered today hints that there is some unwinding to the safety flows but we’ll see if that can keep up until the end of the day.