Dollar loses some ground to start European morning trade
The greenback is pushed a little lower across the board as we see Treasury yields retreat on the day, with 10-year yields down by nearly 5 bps to 1.542%.
That is seeing the dollar slip as EUR/USD climbs from 1.1850 to 1.1875 while USD/JPY has also slumped from 109.20 earlier to 108.85 currently – down to session lows.
Of note, EUR/USD is keeping above its 200-day moving average (blue line) for now. However, buyers still have more convincing to do to suggest a turnaround.
As things stand, Treasury yields are on the retreat after touching above 1.60% yesterday but the mood remains more tentative and will likely stay that way ahead of the FOMC meeting next week; though the market reaction may be showing some expectation that the Fed will be taking up some action (verbal or otherwise) to curb the rise in yields.