US dollar slides as bonds continue to attract bids
The US dollar is at the lows of the day across the board, led by an 80 pip decline in USD/JPY. The leg lower was kicked off by falling oil prices which weighed on Treasury yields and also helped to boost equities.It's resulted in a risk-positive environment that's typical of USD softness. A quick spot check:EUR/USD down 30 pipsUSD/JPY down 80 pipsGBP/USD up 35 pipsUSD/CHF down 37 pipsCommodity currencies flat, erasing earlier declinesUSD/JPY has been a real roller-coaster to start the year and is now challenging the post-ISM low from Friday.The risk with everything trading off of oil is that it can all reverse quickly. Oil got as low as $70.13 and is now back to $70.95 so some of that is already underway.We also get a trio of Treasury auctions this week and that could push up yields as well. This article was written by Adam Button at www.forexlive.com.
The US dollar is at the lows of the day across the board, led by an 80 pip decline in USD/JPY. The leg lower was kicked off by falling oil prices which weighed on Treasury yields and also helped to boost equities.
It's resulted in a risk-positive environment that's typical of USD softness.
A quick spot check:
- EUR/USD down 30 pips
- USD/JPY down 80 pips
- GBP/USD up 35 pips
- USD/CHF down 37 pips
- Commodity currencies flat, erasing earlier declines
USD/JPY has been a real roller-coaster to start the year and is now challenging the post-ISM low from Friday.
The risk with everything trading off of oil is that it can all reverse quickly. Oil got as low as $70.13 and is now back to $70.95 so some of that is already underway.
We also get a trio of Treasury auctions this week and that could push up yields as well. This article was written by Adam Button at www.forexlive.com.
