Dollar sits comfortably higher but takes its foot off the gas pedal for now

The dollar continues to hold higher across the board but not really pushing further upside in European morning trade. USD/JPY is up 1.5% to 153.95 with the earlier high touching 154.37. Meanwhile, EUR/USD is seen down 1.5% to 1.0765 but well off lows of 1.0702 when Trump was more or less a shoo-in to win the presidency earlier.

The chart is an intriguing one though. The latest bounce from earlier this week was in part to do with narrowing odds between Trump and Harris in the lead up to the election. But that has now largely fizzled off and then some, with a rejection somewhat near the 100-day moving average (red line).

As price action keeps below 1.0800, sellers are back in control and will look to crack the October low of 1.0760 on the daily close. That will provide more momentum to search for further downside during the week.

Trump trades are still dominating the mood in broader markets and I wouldn’t expect that to change in the next day or so at least. The key thing to watch now is the control of the House.

This article was written by Justin Low at www.forexlive.com.