In a quiet foreign exchange market, the dollar demonstrates a stronger position against the majority of G10 currencies, reflecting a generally consolidative sentiment. The US markets are not operating today in observance of President’s Day, and Chinese markets will remain closed for the entire week in celebration of the Lunar New Year. Disappointing Japanese data, including Q4 GDP and December industrial output, has exerted pressure on the yen, which is down approximately 0.5%. However, the greenback has not surpassed the high established at the end of last week. In the absence of mainland guidance, the market saw a significant increase in the offshore yuan, marking its largest advance in several weeks. As Iranian officials engage in discussions regarding technical matters with UN nuclear regulators, the Revolutionary Guard conducts military drills in the Strait of Hormuz, coinciding with a display of US military strength in the area.

Meanwhile, talks between the US and Iran are ongoing. Oil prices remain relatively stable, while gold shows a slight decline. The euro experienced subdued trading, albeit with some fluctuations, as the weekend approached. A breach of last Wednesday’s range could indicate the trajectory of the subsequent 0.5-1.0-cent shift. We are inclined towards a breakout to the upside. The current price is approximately a fifth of a cent below $1.1880. The dollar remained just under Thursday’s peak as the weekend approached, reaching a session low around JPY152.60 around midday in New York. Support is identified in the JPY152.00-20 range. The dollar has maintained a position above JPY152 since late October. Disappointing data exerted pressure on the yen, while the greenback rebounded to nearly JPY153.65.

Initial resistance could be observed at JPY153.75, followed by JPY154.35. Sterling rebounded from a four-day low early Friday, approximately $1.3590, and climbed to nearly $1.3660 during North American trading hours. It struggled to rise significantly today, yet it has not lingered below $1.3635 for an extended period. Last week’s peak was slightly under $1.3715, yet a breakthrough above $1.3730 might indicate a resurgence towards the highs. The US dollar’s rebound from last Wednesday’s low against the Canadian dollar encountered resistance around CAD1.3640, which corresponds to the retracement of the decline that began from the February 6 high. The price retraced to just under CAD1.3600. The current trading range is relatively stable, fluctuating between approximately CAD1.3605 and CAD1.3625. Proximity to support is identified within the CAD1.3555-75 range.

The Australian dollar reached its highest point last Thursday, just a few hundredths of a cent shy of $0.7150. The price dipped to approximately $0.7045 before the weekend, subsequently rebounding to around $0.7085. The asset fluctuated within a range of approximately $0.7055 to nearly $0.7100 today. A notable peak does not seem to be established; however, a breach of the $0.7000-$0.7020 range would necessitate a reevaluation, given that momentum indicators are extended.