Dollar continues to stay in prime position

The dollar continues to stay buoyed in trading this week, as it runs a little higher again today. The stronger US retail sales data from yesterday is reverberating, alongside the geopolitical nuances that are playing out. Rate cut bets have receded significantly with one in September barely fully priced in at the moment. And we have even seen some punters out there taking rate cuts off the table entirely for this year.

For today itself, we have seen Japanese officials offer up some verbal intervention to try and quell the USD/JPY advance. And we also have China calling for state banks to step in and push back down the USD/CNY march higher. Those are some limiting factors for the dollar but yet, it remains in prime position.

EUR/USD is on its way towards testing 1.0600 with little technical hurdles until 1.0500 potentially. Meanwhile, USD/JPY might have some challenge in touching 155.00 amid intervention risks. But it is still a pair that is looking more poised to hold higher amid the rise in bond yields, at least for now.

GBP/USD is also down to its lowest in five months, nearing the 1.2400 mark. Similarly, USD/CAD is up to its highest since November at 1.3800 currently. And we are seeing AUD/USD also at its lowest in five months, nearing the 0.6400 mark.

Once again, the great dollar demise has been greatly exaggerated.