Dollar continues its struggles into the new year


Dollar slips a little further as we get into European morning trade

The dollar is now down to the lows for the day, easing across the board to start the session. The drop comes as risk is also keeping in a better spot with US futures now trading up by 0.3% as we get things underway.

GBP/USD D1 04-01

Cable is up to trade just above 1.3700, breaching the figure level for the first time since May 2018. Meanwhile, EUR/USD has moved back above its 100-hour moving average as buyers seize near-term control in a push to 1.2268.

Elsewhere, USD/JPY is also falling below 103.00 to a session low of 102.94 with commodity currencies posting a modest advance against the greenback.

Going back to cable, the technical picture doesn’t bode too well for the dollar to start the year. The break above the December highs of 1.3619-24 in thin holiday trading has continued and that leaves little in the way of a potential push towards 1.4000.

As mentioned last week, the pound may still find itself struggling despite a Brexit trade deal being achieved but against the dollar, it could still find some upside potential amid the misery in the greenback which appears to be continuing for now.

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