Yen’s Resilience Causes Investors to Shift Bets – WSJ
Asian shares turn higher as China rallies, dollar up – RTRS
Fed's Fischer: Too much weight placed on Fed's first rate hike – RTRS
Fed’s Mester Says ‘Time Is Near’ for U.S. Interest-Rate Increase – BBG
The US Dollar extended gains overnight, still inspired by the higher inflation data last week and the Yellen speech on late Friday. Stops were taken out below 1.0950 in EUR/USD and the pair remains under significant pressure. Selling interest reported at 1.10 and 1.1050 with stops from short-term specs laying above. Meanwhile, GBP/USD has nearly retraced all of the post-election gains and is slowly approaching towards the 1.54 level. A clear break below would then pave the way for a 1.51 test. However, we have some significant data releases out of the UK this week, including the GDP release on Friday morning.
USD/JPY is gaining momentum after its breakout last week and is heading towards the 122 level. Dealers report that there is a barrier option at that level and option-related supply ahead of it. However, it is unlikely to be a major obstacle and a breakout seems imminent. The commodity currencies remain weak overall, but have performed well overnight. Dealers note solid AUD & NZD demand in the cross pairs, especially EUR/AUD and EUR/NZD, which both fell already 150 pips since the Sunday open.