Dollar recovers some poise to start the new week


The dollar is bouncing back across the board to start the new week, helped by some earlier remarks by Fed board member Waller earlier here. EUR/USD is down 0.4% to near 1.0300 and USD/JPY seen up 0.4% to 139.40 currently, off earlier highs of 139.90 at the start of the day. The technical picture continues to side with sellers though, after the drop below 140.00 last week:

There’s also a bit of a light pullback in commodity currencies with AUD/USD down 0.4% to 0.6675 and USD/CAD touching 1.3300 earlier before keeping around 1.3260-70 levels now. This comes with a slight pullback seen in the equities space as well after the surging gains on Thursday and Friday last week.

S&P 500 futures are down 13 points, or 0.3%, currently and that is taking some steam off the rally from last week. Treasuries are also offered to start the day, with 10-year yields up over 7 bps to 3.89%.

That is all putting a lid on the optimism for now but the technicals still dictate that the dollar is in a tricky spot for the time being.

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