Dollar buoyed by higher yields, USD/JPY surge

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The dollar can thank Fed chair Powell for the latest push higher today, after he helped to open the door for 50 bps rate hikes in the coming FOMC meetings. That helped to spur a further extension in the Treasury yields breakout, which is in turn also leaving plenty of upside potential for USD/JPY at the moment.

Elsewhere, the dollar is also shining with EUR/USD on course for a third straight day of declines after failing to firmly hold above 1.1100:

Sellers are now in near-term control on a break below the 100 and 200-hour moving averages, with a drop below 1.1000 adding to downside risks for the pair in the short-term.

Besides that, GBP/USD is also continuing to see a rejection of 1.3200 and the latest one is a bit of a setback for buyers as price is also dropping past the 100-hour moving average:

That keeps the near-term bias more neutral now with support seen at the 200-hour moving average @ 1.3107. A break below that opens the door for a potential drop back towards 1.3000 next for cable.

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