Dollar falls across the board
Higher yields? Not to worry. Or at least that is the market reaction so far to start the day.
It seems like traders are largely skipping any major concerns and implications of a breakout in yields, as we see 10-year Treasury yields jump by 6.7 bps to 1.02% currently:
That said, it is still early in the day and I'd argue that we'll only get further confirmation of the reaction to the Georgia runoffs later in US trading.
The big picture risk for the dollar going into the event was asymmetric (skewed to the downside) but I would have thought that the push back above 1% could offer some push and pull in the market that may lend itself to short-term dollar bids.
So far, that isn't quite the case. Elsewhere, S&P 500 futures have also trimmed losses to 0.1% as we look to start European morning trade.
Back to the dollar, it is now trading to its lowest levels since April 2018 against the euro, aussie and kiwi. Of note, the firm push above 1.2300 in EUR/USD keeps buyers in control for a potential move towards 1.2400 and 1.2500 next.
Meanwhile, in AUD/USD, there is some minor resistance around 0.7800-10 nearby but it is still looking poised for a potential move towards 0.8000.
