The dollar was already slightly on the softer side from Asia trading and things are pretty much the same as we get into the European session now. EUR/USD is up 0.2% to 1.0820 while GBP/USD is up 0.3% to 1.2325, both near the highs for the day, but the ranges are still rather modest.
USD/JPY is down 0.5% to just below 131.00 but is off its earlier low of 130.50 as bond yields nudge a little higher as we get into European trading. 10-year Treasury yields are up just a bit by 1 bps to 3.537% after being down slightly to around 3.507% earlier.
As you can see, the pair is still very much tied to movement in the bond market but just be wary of potential last-minute repatriation flows amid the Japanese fiscal year-end. That could've been a factor for the stronger bid in the yen in Asia earlier.
Elsewhere, AUD/USD is up 0.6% to 0.6685 and NZD/USD up 0.6% to 0.6235 at the moment but both pairs are still within the confines of the ranges in the past two weeks. As such, there isn't much to really take note of besides a bit of a recovery in the risk mood as the banking turmoil ebbs.
