The US dollar is broadly weaker following non-farm payrolls and the euro has taken advantage, climbing to the highest since May 21 at 1.3677.

Two factors are pushing the dollar lower:

  1. Euro buyers were waiting on the sidelines patiently until non-farm payrolls were out of the way, the report was a touch strong but doesn’t change the picture.
  2. US Treasury yields are falling

The big story is in Europe where they’re buying any asset that isn’t nailed down. Stocks across the region are surging and European bonds are ripping. French 10-years fell to a record 1.656%, down 12 bps today. Italian 10-years are down 20 bps to 2.73%.

The big trade is to buy European assets after the ECB and the euro moves are collateral damage. Right now the flows are dominating but traders are going to wake up on Monday morning and see German 10s at 1.34% and decide to put their money elsewhere.