It is only the Japanese yen that is trading higher against the dollar today and that owes to bond yields keeping slightly lower still in European morning trade. USD/JPY is down 0.25% around 145.80-90 levels mostly, as we are seeing 10-year Treasury yields be down 1.6 bps to 4.102% at the moment.
That aside, the dollar is trading firmer across the board with the euro being the laggard. EUR/USD is down 0.5% to 1.0870 and that owes to traders paring bets on an ECB rate hike for next month as noted here. Cable is also down 0.3% to 1.2680 now while the antipodeans are also down by roughly 0.2% against the greenback on the day.
It’s not much but once again this exemplifies more of a push and pull mood in the FX market so far this week.
European indices are keeping relatively steady with Dow futures seen up 0.3%. Tech shares are lagging with Nasdaq futures flat at the moment.
In any case, US data will be a key focus point once again later today. While other markets are keeping calmer as FX traders only respond to euro area data, any broader market reaction to the US data to come will arguably have bigger implications for the dollar as well – especially tomorrow’s non-farm payrolls report.