The buck is struggling to regain some of the ground lost in recent session. The move is not particularly large but what I find impressive is the breadth of the rally. The buck is firmer versus pretty much everything this afternoon (accept the CHF) , suggesting the market views the intraday break of trendline support in the DXY as a false break.
It also suggests to me that since the CHF is holding steady (around 0.9260), the market may finally be beginning to shift its focus back to EU sovereign debt crisis and away from oil prices…
USD/JPY has pushed up t0.82.25 so far this afternoon cable is back below 1.6200 and EUR/USD is withing 15 pips of session lows. Commodity currencies are weaker as well. USD/CAD is up at 0.9740; AUD is 80 pips off overnight highs just above 1.01.
