The dollar is seeing its recent advance stall, as traders are trying to figure things out amid the lack of major economic data releases in trading this week. I’ll dive more into the charts later in analysing the changes in near-term sentiment for the dollar. But for now, we’re seeing dollar bulls give back some control on the week.
The dollar drop yesterday comes amid a fall in Treasury yields as well. 10-year yields dropped from 4.65% to 4.58% and are now hovering around 4.57% as we look towards European trading. That is keeping things in check as we see more of a push and pull feel this week.
US Treasury 10-year yields (%) daily chart
It seems almost standard now that we are due bigger moves across markets on weeks when there is big data and/or major central bank decisions. In between that, there is more of a consolidative mood overall. And that is arguably what we’re seeing so far in trading this week.