The dollar is keeping on the softer side as we look towards European trading today, with a couple of notable major currency movements already to start the new week. The antipodeans in particular are making decent strides, with AUD/USD hoping to secure a firm breakout above 0.6500 in particular. But in terms of overall dollar sentiment, USD/JPY continues to be the driving force as the pair now dips back under 149.00 to test three-week lows:
USD/JPY vs US Treasury 10-yer yields (%)
The 30 October low at 148.80 is one to watch on the daily chart but amid the recent plunge in yields, there might be more correction still for USD/JPY to go this week.
Elsewhere, EUR/USD is trading up 0.2% to 1.0930 – its highest since the end of August – and looking towards 1.1000 potentially next.
It’s a general retreat for the dollar and so far today, we’re picking things up from where we left off from last week.