U.S. Dollar Trades Slightly Higher Against Major Peers

The U.S. dollar traded slightly higher against other major peers Tuesday.

The British pound retreated from its high around 1.4250 and fell back below 1.42, trending lower towards 1.4140. While much of yesterday’s downward move can be attributed to the dollar’s rebound ahead of Friday’s NFP report, concern over a new coronavirus strain in the U.K. contributed to the bearish movement.

If the GBP/USD falls below 1.4120 we expect further losses towards 1.4050 whereas a renewed break above 1.42 could lead to a test of 1.4270 and possibly even 1.4320.

There is nothing new to report in the EUR/USD and we continue to watch out for prices between 1.23 and 1.2080.

DAX: As expected, the index found a short-term resistance at around 15680 from where we saw a slight reversal. A next higher target is 15700. On the downside, we expect the price area between 15250-15150 to act as a support.