Dollar in charge ahead of European markets open
The greenback holds firm amid the Fed flip flop debacle
The dollar is leading the way after some back and forth commentary by the Fed with John Williams providing more dovish remarks (sending the dollar down) yesterday before his own New York Fed branch had to clarify that they were purely "academic" in early Asia Pacific trade (sending the dollar back up).
Gains in the greenback has leveled off a little but there isn't much doubt that this remains the key focus in markets as we get into the start of European trading today.
The yen is holding on the weaker side as Treasury yields are climbing back up with 10-year yields higher by 2 bps to 2.045% currently. Meanwhile, equities are still in a bit of a cheerier mood amid the recent dovish chatter by Fed speakers overnight.
The rest of the major currencies bloc are little changed to one another but the dollar is still overall weaker compared to the start of yesterday's trading. Do be reminded that after today, Fed speakers will enter into a blackout period so we won't hear any latest remarks up until the FOMC meeting on 31 July itself.
As such, we could expect more choppy and messy price action as markets continue to figure out what the Fed intends to do later in the month.