The dollar is still suffering a bit of a hangover from Friday’s weaker services ISM report. Overall market sentiment remains upbeat, with stocks and bonds more in demand so far in European trading. The dollar decline does not extend too much as we see the ranges consolidating, but the greenback is still lower across the board.
Of note, USD/CAD is down 0.5% at 1.3370 near the lows as the pair threatens further decline below its 100-day moving average. Meanwhile, AUD/USD is also up 0.5% at 0.6910 as buyers look for a breakout towards 0.7000, albeit far from previous highs of 0.6947. The only dollar pair against the trend is USD/JPY, which is up 0.2% at 132.35, as previously reported here.
Elsewhere, EUR/USD is up 0.4% at 1.0670-80 as we see the buyers making another run to 1.0700 after maintaining a push towards broken Trendline support ( white line) from before:
The fall in the dollar comes amid rising equities, with European indices posting gains of around 0.3% to 0.5% while S&P 500 futures are up 16 points, or 0.4 %, currently. Meanwhile, 10-year Treasury yields are up 2.4 basis points at 3.595%, with bonds also remaining marginally in demand today.