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Dollar slips below 200-day SMA as BoJ hike bets grow
EUR/USD pushed above 1.1600 and USD/JPY fell toward the early-August area near 155.00 ahead of US nonfarm payrolls.
The US dollar extended its pullback, sinking to multi day lows and breaking below its key 200 day moving average, according to FXStreet. The move came alongside rising market talk that the Bank of Japan is preparing for a rate hike, while geopolitical concerns and caution ahead of US nonfarm payrolls took a back seat.
The US Dollar Index, DXY, also built on prior losses and dropped below the 99.00 support level as it left the 200 day SMA behind. FXStreet said nonfarm payrolls will be the main event at week end, alongside the unemployment rate and wage inflation data.
Elsewhere, EUR/USD traded with notable gains, surpassing 1.1600 to reach four day highs, while GBP/USD reclaimed the 1.3550 area to post two day highs after two sessions of losses. FXStreet also noted USD/JPY dropped to levels last seen in early August near 155.00, tied to increasing bets on a BoJ hike.
Beyond the dollar pairs, FXStreet highlighted an economic calendar across Europe and Japan, including Germany factory orders and euro zone PMI readings, plus US Treasury yields easing and Middle East jitters helping gold recover above $4,500 per troy ounce. The outlet also pointed to WTI moving above $93.00 per barrel, supported by tensions tied to the US Iran Hormuz front.
Latest closeGold $4,431.70 ▲1.9%|WTI crude $90.70 ▲0.5%|EUR/USD 1.159 ▼0.1%