We saw a more risk positive session yesterday but things are turning the other way around today, as markets are leaning more towards the cautious side it would seem. Equities are slightly softer, with S&P 500 futures down 0.3% and European futures also a touch lower. And we are seeing Treasury yields also keep a little lower, with 10-year yields down 3.2 bps to 3.475% currently.
That is keeping the dollar slightly underpinned, with some light moves playing out to start the session. AUD/USD is down 0.5% to 0.6665 while GBP/USD is down 0.3% to 1.2490. The latter isn't really helped by a somewhat softer, at the balance, UK jobs report here.
GBP/USD is trading back under 1.2500 as sellers continue to keep near-term control of the pair. I shared some thoughts about the outlook yesterday here.
It's looking like we are still caught in more pushing and pulling before getting to the US retail sales data later today.
