EUR/USD makes small gains as GBP/USD drops and USD/JPY briefly hits new high

While the euro has managed to make some gains against the dollar, the pound is still struggling. USD/JPY has briefly touched a new higher high.

EUR/USD edges higher

A small EUR/USD bounce in early trading is only to be expected after the losses of the past two sessions, but intraday bounces have been the cue for more selling of late, and it would not be surprising if this turned out the same way.

Dollar strength continues to carry all before it, putting further pressure on the currency pair; even a rally towards $1.1375 would be an impressive achievement for buyers in this environment.

GBP/USD heads lower

Renewed talk of Bank of England (BoE) rate hikes has done nothing to lift GBP/USD, as the pair heads back to the lows of mid-month.

Low stochastics are a feature, not a bug, of such powerful downward moves, and point towards continued losses for the pair. Buyers will need to scale the heights of $1.345 and then $1.35 to provide a more short-term bullish view.

USD/JPY stalls at ¥115

A new intraday higher high did not last long overnight, as global risk appetite soured, but overall USD/JPY appears to have found renewed upside momentum.

Rising trendline support from early October continues to provide a foundation for further gains, although the sellers appear to be mounting a spirited defence of ¥115.

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