Dollar Extends Gains as Stocks Advance

The dollar continues to add to its early gains against the yen, pound and euro, reward by better-than-expected U.S. economic data and record highs in the Dow and S&P 500.

USD/JPY pierced 113.50 on the combination of the payroll report from ADP and strong personsal income and spending data. Another push to 113.75 came on the heels of a the Chicago PMI, but as of yet, the level has yet to be breached. This still leaves the dollar more than 1% higher at 113.62.

The move lower in EUR/USD was more dramatic as the euro made a sudden retreat below 1.06 to the session low of 1.0581. This level remains intact as support, but is vulnerable to a breach if EUR/GBP trades below 0.85, currently at 0.851.

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