The dollar is sitting higher so far today, as it builds on the advance from yesterday. That came alongside higher Treasury yields, as markets take a bit of a breather from the earlier moves this week. But as we approach the final day of trading on the week, we are seeing a familiar risk rotation theme again.
Equities are lower with S&P 500 futures now down 0.5% while Treasury yields are also down, with 10-year yields lower by 1.8 bps to 3.781% currently. The dollar is staying underpinned though, with USD/JPY holding above 143.00 on the day:
USD/JPY daily chart
The pair continues to look poised for a push towards 145.00 now, at least from a technical perspective. And that brings into question of whether Japanese officials will start to escalate intervention measures as discussed here.
Elsewhere, EUR/USD is down 0.2% to 1.0933 at the moment and is keeping virtually flat on the week. But the dollar has recovered some decent ground with GBP/USD down 0.3% to 1.2705 now and nearly halving last week’s losses.
Meanwhile, the aussie is the biggest loser on the week with another 0.8% fall today to just under 0.6700 as AUD/USD erases all of last week’s gains and then some currently. It’s a dramatic fall for the pair as price now moves back towards testing its 200-day moving average at 0.6690 as the fall today also threatens to take out the 100-day moving average at 0.6712.