The dollar is under a widespread selling pressure on Friday, as year-end market positioning dents demand for the American currency. This is the main catalyst behind the current sell-off, as the greenback has been nursing losses even against the safe-haven counterparts including the Japanese yen and Swiss franc. Meanwhile, risk sentiment in the global financial markets remains positive, as investors continue to express hopes for a partial trade deal and also cheer positive economic data from China.
The euro, which managed to hold above the support in the form of a 100-DMA at 1.1060, jumped from the local lows, to challenge the 200-daily moving average. In recent trading, EURUSD registered 10-day highs around 1.1155, just above the mentioned moving average. Should the pair confirm the breakout on a dally closing basis, the short-term technical outlook will improve somewhat. Still, the common currency needs to overcome the 1.1180 area, a break above which will open the way towards mid-December highs around the 1.12 barrier.
Meanwhile, GBPUSD has accelerated the recovery, adding gains for a third day in a row. The pair has been trimming previous losses, incurred amid the reemerged no-deal Brezir fears. As concerns started to abate, and dollar demand has waned, the pound shifted into a recovery mode. The prices extended gains to 1.31, up from the lows around 1.29 registered earlier in the week. But to make a clear break above this barrier, the pair may need more dollar weakness, or some additional drivers.
USDJPY turned negative in the daily charts after a decent local rally witnessed on Thursday. The pair was once again rejected from local highs around 109.70 and came under pressure. Still, the downside potential is limited as safe-haven yen demand is subdued as well. On the downside, the pair needs to hold above the 109.25 area which is standing on the way towards the 109.00 psychological support. If so, USDJPY may resume the ascent, as in general, upside risks still prevail for the pair. The key target for dollar bulls comes at 109.70.