Dollar down slightly as the bond selling comes off the boil for now

The greenback is sitting lower on the balance of things now, with EUR/USD up 0.3% to 1.0500 and GBP/USD up 0.4% to 1.2125 on the day. It comes as the bond rout is seen cooling in European trading, with 10-year Treasury yields now at 4.81% after having touched 4.88% at the start of the session.

That being said, USD/JPY is still keeping steadier at 149.15 despite Tokyo intervention overnight. And that speaks quite a lot about overall dollar sentiment at the moment I would say.

As for the bit part reprieve now, stocks are also benefiting with US futures turning flat and European indices posting a light advance after seeing red at the open. But as has been the case many a time over the past few weeks, the selling tends to hit in US trading and that’s when the dollar comes back into favour. Will today be any different? We shall see.