The dollar opened with a gap higher today amid more sluggish risk sentiment, following news over the weekend that China isn’t looking to back down from its zero-Covid policy. While the overall risk mood is still more tepid, we are seeing the dollar pare some of its gains now as traders look to get settled into the new week.
EUR/USD opened with a gap lower, touching a low of 0.9900 earlier today but is now trading to fresh session highs at 0.9967 – essentially filling the gap. GBP/USD is also back up to 1.1370 and running into its 100-hour moving average after having touched a low of 1.1290 just about an hour ago.
The moves are signalling a bit of chop to start things this week, after the dollar struggled despite a somewhat solid US jobs report on Friday.
Still, EUR/USD is keeping below parity for now and that is still key in limiting gains alongside its 100-day moving average at 1.0045 at the moment.