USD has come under relentless pressure

It has been another week where the USD has come under relentless pressure, with the FOMC midweek disappointing USD bulls who were looking for a little less dovishness from Yellen and Co. Adding to fresh losses in the USD index, the BoJ failed to introduce any fresh stimulus, opting to adopt an wait and see policy on measures introduced at their previous meeting. The combination of the above saw USD/JPY ripping through a series of support levels on the downside, not least of all 107.50, and later 107.00 to put 105.00 back on the horizon. Along with the Fed perspective EUR/USD has been propelled back to the highs seen earlier on in the month, with a retest of the 1.1467 highs back on with the help of some better than expected Euro zone data today. Inflation was marginally below expectations, but against the USD, the EUR looks extremely well bid. Cable gains have surprised many, taking out some heavy sell orders from 1.4400-1.4550 to rally on to the Feb highs at 1.4667. The market is capped here for now, but we are a far cry from the low 1.3800’s seen earlier in the year. For the commodity currencies, the CAD continues to benefit from the relentless recovery in Oil, surpassing a projected range top at $45.0 to put 1.2500 under pressure. AUD remains under pressure though, but with stocks on the slide and calls for the RBA to cut rates next week after the inflation surprise, sellers are never too far away here. Also next week is the May US payrolls on Friday, but with the USD index hovering closer to the 2015 lows, we may be nursing some heavy losses by this time. Manufacturing and services PMIs a running data theme through the week, but the USD focus is overwhelming at the present time.