FX Board: Greenback's gain is a loss for EUR, CHF, GBP
- USD crosses the day's major players as greenback rallies
- EURUSD reverses through key 1.1200 pivot zone
- Strong US data could send EURUSD to 1.10
- The dollar stayed on the strong side after Friday ended in a USD surge, forming a pronounced bullish USD reversal in most pairs. The greenback's strength today was most pronounced versus the European majors, with GBPUSD crushed back below 1.3100 and EURUSD below the 1.1200/50 pivot zone. USDCHF, however, has seen the most violent turnaround since early Friday level as EURCHF has been back teasing the top of the range.
- From here, the USD technical outlook looks good, but the market has often lacked conviction in recent weeks and uncooperative data could once again frustrate the market's attempt to sustain a directional move in the USD.
- There was little to go on besides the USD story, though some non-USD JPY crosses did show signs of turning lower after sprinting higher to new local highs today (EURJPY and GBPJPY, for example); it's too early to tell whether this is significant.
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— Edited by Michael McKenna
John J Hardy is head of FX strategy at Saxo Bank