The dollar is creeping higher to start the session, as it now holds decent gains against the rest of the major currencies bloc. EUR/USD is down 0.3% to 1.1675 while GBP/USD is down 0.3% to 1.3435 on the day. That said, these levels were already visited in trading yesterday so it isn't anything to shout about.
Elsewhere, AUD/USD is down 0.4% to 0.6590 as the tussle around 0.6600 continues. Meanwhile, USD/JPY is the most notable one as it is keeping a break above 150.00 and is now setting sights on the end July high:
There's no catalyst or headlines sparking the flows here as traders are mostly just dealing with the latest political developments from Japan and France to start the new week. The big picture flow still continues to revolve around Fed sentiment, with market players already more or less fully pricing in a 25 bps rate cut. That as we also continue to assess the risks surrounding the US government shutdown.
So, the only thing to watch out for is the technicals. And in this case, USD/JPY presents the more interesting scenario on a potential upside breakout this week as it continues to hold above 150.00 for now.
