A quick glance at the major currencies space will tell you that the dollar drop today owes to a better market mood perhaps. And while that may be the case earlier in the day, it isn't so evident now to be honest.
2-year Treasury yields are up 2bps but at the lows for the day at around 4.15%, while 10-year Treasury yields are down 3 bps to 3.55% now. Meanwhile, US futures remain flattish despite the optimistic run higher in Wall Street yesterday. That serves to tell us that markets are still rather tense about whole banking situation in both the US and Europe towards the end of the week.
Looking back at the dollar, EUR/USD is up 0.4% to 1.0645 and looking to keep a bounce off its 100-day moving average (red line) this week:
However, there are large option expiries to take note of that could hinder any major upside - at least for the session ahead.
Meanwhile, USD/JPY is down at the lows for the day around 132.90 - lower by 0.6%. GBP/USD is up 0.4% to 1.2160 while USD/CHF is down 0.3% to 0.9260 at the moment.
As for the antipodeans, they are looking more upbeat with AUD/USD up 0.8% to just above 0.6700 and contesting the short-term highs/resistance from earlier in the week at the moment:
Just be wary that with tensions still running high, it can be quite easy to spook markets into running in the other direction again.