EURUSD 10 mins
The US dollar is on the backfoot as the month winds down and we head towards Friday’s US PCE report.
The dollar is at the lows of the day across the board, including against the yen and Swiss franc as today’s move appears to be a uniquely-dollar driven drop. That’s come with strength in bonds and a 5 bps decline in yields across the board in a partial reversal of the price action in the prior two days.
It’s not clear what has been driving the bond market action but on Tues/Wed there were three weak Treasury auctions. That wave of supply is now past and the dip buyers might be wading in with US 10s back above 4.50%.