Yet another rip higher in the USD
Late in the week, we get another ramp up in the USD, and from what we can see, the only factor behind this is the better than expected production figures in the US. This usually tends to have a limited impact on the market on other occasions, but having been starved of other data (due to the government shutdown), traders seem to be feeding off whatever they can get.
As such, EUR/USD was shaping up for a more meaningful recovery through 1.1400, yet despite tipping the highs from Thursday, sellers have rushed in again to slam the pair lower, in what looks to be an inevitable test of the range lows in the low 1.1300's.
Cable has behaved in similar fashion, and despite North American traders pushing the spot rate as high as they could - into 1.3000 - they have changed tack and we have since dipped under 1.2900 in recent trade.
It is a little easier to see why USD/JPY has pushed higher with US stocks building on gains seen through the week and we are hitting fresh highs since the pre and post-Xmas fallout - both in stocks and spot JPY.
New highs also for USD/CHF, while EUR/CHF is moving the other way now, though we note support into 1.1275 in the latter, while psychological support kicks in just ahead of parity in the spot rate.
Price action seems erratic and looks to be taking advantage of thin market conditions, so we keep an eye on 1.1320-40 in EUR/USD and pre 110.00 in USD/JPY respectively.