Dollar extends its advance to start European morning trade
The greenback is holding modest gains across the board to kick start the session, paring its drop from yesterday. EUR/USD is trading down to the lows at 1.2018, closing in on the Monday lows around 1.2013-15 at the moment:
Sellers are keeping near-term control and the push back below the 100-day moving average (red line) provides more conviction for an added downside push, potentially to test the 1.2000 handle as London traders return after the long weekend.
The dollar is also keeping modest gains against the pound, with cable dragged lower to 1.3860 while AUD/USD is trading down 0.4% to 0.7730 currently.
USD/JPY is also keeping a slight advance after the pullback yesterday as Treasury yields creep back higher too. 10-year yields are up 1.8 bps to 1.615% and that is putting the price focus back on the 61.8 retracement level of the April downswing @ 109.63.
argue for a stronger dollar during the month and the focus back on reflation i.e. higher yields may perhaps also provide a supportive backdrop if it keeps up.
As things stand, the technicals are at least pointing to dollar buyers staying in control to start the new week/month.