The dollar is higher across the board so far on the session as it gradually gains further ground today. EUR/USD is now down 0.3% to 1.0809 while USD/JPY is up 0.2% to near 150.80 at the moment. The latter is in an interesting spot as it nears the highs this month:
USD/JPY daily chart
There is minor resistance around 150.80 levels and that is not to mention the large expiries seen at 151.00 today. For buyers, they have to break through that in order to angle towards a retest of the November high at 151.90 next.
But just be mindful that we are starting to near a point where traders are considering the BOJ’s next steps. That could see a buying rush into the Japanese yen, depending on how the central bank plays things out. I mean, nobody wants to be the one holding the bag too early considering the negative carry in USD/JPY.
Besides that, GBP/USD is also down 0.4% to 1.2635 while USD/CAD is up 0.4% to 1.3577 currently. The latter is also contesting the highs for the month near 1.3572-86 and that could result in a stronger break higher for the pair next.
Meanwhile, the kiwi continues to lag with NZD/USD down 1.1% to 0.6100 on the day. The situation summary for the pair can be found here.
Despite Barclays and Credit Agricole arguing for dollar weakness this month-end, we’re not seeing much of that so far. Let’s see what the London fix might bring up later today and tomorrow.