The rally in equities yesterday helped to pin the dollar back down alongside a drop in Treasury yields. There weren’t any major headlines to have caused the turnaround from last week but it could be that traders are pricing in some anticipation ahead of the US CPI data on Thursday.
10-year Treasury yields are now at 4.01%, keeping below the 200-day moving average of 4.06%, and that technical factor is also perhaps what is keeping a lid on things. So far today, things are calmer with the dollar steadying itself and holding mostly little changed amid narrow ranges:
USD/JPY is down slightly though by 0.3% to 143.80, with the technical points in play highlighted here.
Besides that, there continues to be much focus on Bitcoin as well with the ETF approval looking imminent. Bitcoin had a surging day to clip above $47,000 yesterday but is down 0.8% for now to $46,750.
Looking ahead to European…
