The dollar is losing a bit of ground in early trades in Europe

EUR/USD H1 28-06

The greenback is holding weaker as we begin the session and we're seeing EUR/USD now inch back above its 100-hour MA (red line) as buyers look to establish a more bullish bias to wrap up the week.

Of note, there is some resistance around 1.1391 and also offers lurking around 1.1400 so that could help to limit gains in the near-term for now.

The slight move lower in the dollar is coming about a tick higher in Treasury yields as well as US equity futures, which are up by about 0.2% now. There's been plenty of chatter of month-end and quarter-end rebalancing moves that will take place today and I reckon that's certainly part and parcel of what is driving price action on the session.

It's hard to really read into anything when markets are behaving as such, particularly with such a key risk event taking place over the weekend. Position squaring will also be a factor in that sense so it potentially could lead to a bit of a messy Friday.