The dollar is picking up from where it left off last week as gains are coming through once again. EUR/USD is down 0.2% to fresh ten-week lows at 1.0685 while USD/JPY is touching 140.90 as buyers look to extend the break above the 140.00 mark and are eyeing 142.00 next:
USD/JPY daily chart
And that comes despite Treasury yields holding slightly lower after the long weekend and equities also holding minor gains ahead of European morning trade.
For the dollar, it’s mostly about the turnaround in the Fed outlook as markets now see good reason for the central bank to maintain a higher for longer narrative.
Elsewhere, AUD/USD is on the verge of another test of 0.6500 and NZD/USD is closing in on a test of the 0.6000 mark today.