The dollar slide continues on the week and the greenback is now in a pretty rough spot, as the technical breaks start to extend further before the weekend. I highlighted the predicament for dollar pairs here and will go into the charts in more detail later in the session.
There won't be much to distract markets from that, so will we see the rout keep up before the week comes to an end?
Equities are continuing to keep steadier with tech stocks leading the charge yesterday. Meanwhile, bond yields are staying on the retreat and it has been a significant climb down for Treasury yields this week. At the end of last week, 10-year yields were at 4.07% but now they are down almost 30 bps to 3.78% currently. The move there does add to the drag in yen pairs on the week as well.
Looking ahead today, economic data will once again take a backseat in Europe with little key ones on the agenda. As such, the focus will stay on the technicals and in the case of the dollar, it is looking out to see if there will be a pause in the selling or a further break lower for the currency in this latest downside leg.
0600 GMT - Germany June wholesale price index
0630 GMT - Switzerland June producer and import prices
0900 GMT - Eurozone May trade balance data
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
