Little movement in the USD as buyers holding recent lows
Looking at the USD index on the daily charts, we can see a band of support at 96.75-80 which is refusing to give way. At the end of last week, we test just under here, though failed to close below. A half-hearted attempt to press upon these levels was seen early on this morning, yet with little impetus from US markets, we have since trading sideways with limited data and news to feed off today.
What there has been has come and gone with little impact: the NY Empire State manufacturing index coming in at a better than expected 10.1 vs 6.7, up from 3.7 previously. NY is not heavily reliant on manufacturing, so this tends to be ignored for the most part.
Fed policymaker Evans has been on the wires recently, and noting ongoing strength in the US with Q1 expected to show improvement from the end of last year, he also maintains policy remains data dependent, which is nothing new to contend with.
EUR/USD continues to struggle in the 1.1315-25 area, though USD/JPY is similarly capped by 112.00-25. The NY cash (stock) market open is now set to be the next driver of trade, which could see North American traders focusing on the JPY pairs.