Dollar Regains Composure

The dollar has recouped most of its losses against the yen and euro following anemic personal income and spending data at 10am ET on Thursday.

USD/JPY slipped to 117.25 from 117.70 on a 0.2% gain in spending and unchanged income that missed +0.3% expectations for both.

Accordingly, EUR/USD shot up towards 1.05 from 1.0430 with the uptrade stymied by resistance at the 200-hour moving average perched at 1.0488. The euro is holding onto a 0.20% gain against the dollar, but at 1.0444 is off the session high of 1.0498.

Separately, Reuters reported Thursday that the European Central Bank will hold off on any further accommodative policy moves until after the September German elections. The article claims that the central bank is aware that QE is losing its impact on the European economy, and any major new moves by the ECB could adversely impact EU politics. This should be supportive of the euro, but hasn’t made a dent in the recent reversal off the session high.