FX Update: The dollar has come under fresh pressure
FX Update: The dollar has come under fresh pressure. The narrow trade-weighted USD index (DXY) traded at fresh three-year lows, logging a nadir at 89.83 and bringing cumulative loss on the year so far to 13%. EUR-USD logged a 37-month high of 1.2335, while USD-JPY traded below 110.00 for the first time since last September, posting a low at 109.80. Cable forayed further into post-Brexit vote high territory, seeing a peak at 1.4049. NZD-USD posted a new trend high, while AUD-USD came within a whisker of doing so. In the U.S, Jerome Powell was confirmed by a Senate vote as the new Fed chairman, from February 3, and, being a policy moderate by reputation, is expected to maintain Yellen's gradualist approach to tightening. Japanese data today included a strong export figure in December trade data and a four-year high in the preliminary manufacturing PMI survey, of 54.4 -- adding to the global growth narrative, although the stock market rally has sputtered somewhat in Asia. Analysts advise trend following with regard to the dollar.