EUR/USD weaker, as GBP/USD and USD/JPY hold steady

Some of the dollar strength of recent days has abated, stalling the rally in USD/JPY and resulting in a slowdown in EUR/USD’s pullback.

EUR/USD pullback slows

The pace of EUR/USD decline over the past few sessions has slowed, and while the sellers continue to press their advantage, a bigger move below $1.20 still eludes them.

As a result, the bearish view occasioned by the retreat from $1.215 is beginning to lose its strength. A recovery back above $1.205 would help to suggest that a new leg higher has begun.

GBP/USD still struggling below $1.40

GBP/USD remains in the sideways pattern of the past six weeks, although the recovery seen this week has helped to boost hopes of a breakout to the upside above $1.40.

Today’s Bank of England (BoE) meeting is unlikely to provide much in the way of volatility, with GBP/USD’s fate likely resting in the hands of the Federal Reserve (Fed) and further US data this week.

USD/JPY rally stalls

The USD/JPY bounce from the lows at the end of April has slowed, unable to push on above ¥109.40.

Sellers will be watching for a drop back below ¥108.80 that could spark a renewed fall, while buyers will want to see ¥109.50 recovered to open the path to the highs from the end of March above ¥110.50.

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