The dollar might be sitting higher on the session but there are still some mixed elements in play at the moment. The most notable being the drop in Treasury yields, which is still holding so far this week.
10-year yields are seen at 3.945%, not really budging after the sharp drop yesterday. And that comes despite the Fed pushing back against a rate cut for March. 2-year yields are also still looking heavy at 4.225% at the moment.
In turn, this is keeping some pressure on USD/JPY with the pair down 0.2% to 146.65 currently. That is the only exception to the broader gains in the dollar against the rest of the major currencies.
Meanwhile, equities are looking for a light bounce after the heavy sell off yesterday. Tech shares in particular are hoping for a bit more of a rebound with Nasdaq futures up 0.6%. That comes after the Nasdaq index itself closed 2.2% lower in trading yesterday. S&P 500 futures are seen up 0.3% as such currently.
I wouldn’t look too much into the light bounce in stocks after the steep decline yesterday. It’s a tentative breather as traders are gearing up for the US jobs report still to come tomorrow.