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.