Dollar extends gains in European trading

<p>It's one-way traffic in the FX market today as the dollar is pulling higher across the board. The mood today is helped by higher Treasury yields once again, which was what helped to put a bid in the greenback last Friday after the US jobs report. EUR/USD is now down over 0.4% to its lowest levels in nearly three months:</p><p>The push lower resumes the break below 1.0800 and the 200-day moving average (blue line) from the end of last week. This puts sellers in control and with the potential to eye a move towards the 31 May low at 1.0635 next.</p><p>The euro itself is also not helped by worsening ECB rate hike odds as of late, with traders now pricing in just a ~26% probability of a 25 bps rate hike later this month.</p><p>Elsewhere, USD/JPY is continuing to poke and prod at the 147.00 mark while GBP/USD is down 0.6% to 1.2540, also at its lowest levels since June.</p>

This article was written by Justin Low at www.forexlive.com.