Commodity currencies pare early gains to start the session

Author: Justin Low | Category: News

Dollar keeps a steadier footing to kick start European morning trade

It isn't much but it is something to be mindful about in trading today.

AUD/USD H1 22-02
AUD/USD has eased slightly from 0.7880 to 0.7863 currently while GBP/USD is tracking back under 1.4000 at the moment, with the dollar keeping steadier.

As mentioned earlier, the surge higher in yields while is so far benefiting commodities, could reverberate negatively in the equities space and cause more negative spillovers to risk sentiment in general.

That is one factor that could bolster dollar sentiment today, especially if the more tepid risk tones turn into a more flowing sense of risk aversion.

While the likes of copper may still be buoyed on concerns on supply deficit, other commodities such as gold and oil may not benefit so much if the market starts to lean towards being more cautious and risk-off to kick start the week.

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