FX Update: The dollar has traded mixed
FX Update: The dollar has traded mixed after tumbling in the wake of last week's "dovish rate hike" by the Fed. EUR-USD has carved out a fresh six-week peak at 1.0788, breaching above Friday's high at 1.0782. EUR-JPY and other euro crosses have also remained bid, with investors still in process of discounting reduced political risk into the euro after last week's Dutch election. The dollar has fared better against the yen. USD-JPY lifted out of the lower 112s to the upper 112s as Tokyo markets returned from their long weekend, though the pair remained shy of yesterday's 112.89 peak. Near-term resistance is at 112.89 and 113.00, and trend support is at 111.98-112.00. Downside momentum has been in abatement, and the pair only needs to close today above yesterday's low at 112.29 to break the recent run of lower lows. Sterling has settled after seeing some choppy price action on news that the PM May will invoke Article 50 on March 29. Cable found demand below 1.2350 in Asia, though remains well of yesterday's high at 1.2436. Markets are looking for fresh directional cues. The data calendar is picking up, highlighted today by UK inflation data.