Adding to that is the stronger Chinese yuan today, which is also inadvertently boosting the antipodean currencies. The aussie and kiwi are also spearheading gains on the day, as we see yen gains ease slightly on the session. But overall, the dollar is the laggard as it is down across the board; although there hasn’t been any real extensions to dollar losses since the start of European trading.
That being said, I would attribute this mostly to unwinding in USD/JPY longs. As for a turnaround in dollar sentiment, that will remain to be seen. It’s tough to get too excited about a dollar reversal, not least when 10-year Treasury yields are inching closer back to 4.30% and could push past the August high.
Putting aside the BOJ factor to start the new week, nothing else has really changed on the dollar outlook since last week. But as we look towards the US CPI report on Wednesday, perhaps Ueda is providing a good excuse for dollar bulls to square their positions for a bit before we get to the main event later in the week.