The dollar is making a stand after the slew of US data yesterday, which prompted some mixed reactions initially. But ultimately, the bond market was the one that made the difference as higher yields helped to underpin the greenback. 10-year Treasury yields moved up by nearly 10 bps to hit 4.30% and is holding just under that now around 4.28%.
That also helped to keep the equities momentum more limited, with US futures also looking fairly cautious to start the day. As we look to close out the week, the Japanese yen remains in focus ahead of the BOJ policy meeting next week. So far, yen bulls are relatively quiet and aren’t able to hold on to much conviction as USD/JPY runs back up above 148.00.
Besides that, the antipodean currencies are also starting to crack a little towards the end of the week. AUD/USD is down 0.2% to test support from its 200-day moving average at 0.6559 on the day. Meanwhile, NZD/USD is down 0.5% to 0.6100 with its own 200-day moving average lurking at 0.6080.
Looking to European trading, there isn’t much on the economic calendar to shake things up. As such, risk sentiment and any further plays in the bond market will continue to be key factors to watch before the weekend.
0745 GMT – France February final CPI figures
0900 GMT – Italy February final CPI figures
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.