The greenback held its ground in trading yesterday, helped out by a couple of US data points – most notably retail sales. USD/JPY in particular maintained a push above 136.00 and is now perhaps looking towards its 200-day moving average at 137.04 next.
In broader markets, equities slipped while bond yields nudged higher as markets bump up Fed rate hike odds by just a tad. A 25 bps rate hike probability is still only at 18% though, so it isn’t saying a lot – at least for now.
So far today, major currencies are rather subdued as the push and pull continues. US futures are marginally higher while Treasury yields are little changed with 10-year yields just down slightly by 2 bps to 3.528% currently.
The ranges among dollar pairs are still leaving a lot to be desired, so we may get some extension of that in European trading later. But unless there is a more coherent theme in broader markets, there might not be much direction in general once again.