The dollar is little changed for the most part but remains vulnerable
The drop in the greenback earlier in the week is holding as we get in to Thursday trading, though there was some push and pull following the US CPI report yesterday.
The key question on the week remains whether or not the short dollar squeeze is turning the corner or perhaps just encountering a bit of a pause in momentum.
USD/JPY remains a key chart to watch in all of this with the pair now holding just above the 100-day moving average (red line) @ 104.39 after having slipped below 105.00.
As such, the dollar remains very much vulnerable as even in trading today, we are seeing it give back gains against the commodity currencies from yesterday.
EUR/USD may be trading little changed today but it is holding gains, with the advance stalling at the 50.0 retracement level of the swing move lower this year @ 1.2150.
Meanwhile, cable continues to look perky on a break above 1.3800 with buyers hoping to target a move towards 1.4000 should the dollar weaken further.
Things may be more quiet for now as traders take time to digest the dollar moves over the past week but eventually, we should see the action start to pick up again.
