Light changes in market sentiment so far in European morning trade

The changes among major currencies are mostly relatively light so far on the day, outside of the antipodeans. EUR/USD is flattish around 1.0480 now and seen holding within a 34 pips range only today. There are large option expiries at 1.0495 that are in play to keep price action pinned just below 1.0500.

Meanwhile, USD/JPY is also just keeping under the 150.00 mark at around 149.80 currently and holding within a 30 pips range. 10-year Treasury yields are down slightly from around 4.69% earlier to 4.678% now but yields are still at a comfortably high level compared to last week.

The dollar was a little higher earlier on overall but have seen the mild gains ease as stocks are recovering a little. S&P 500 futures are up 0.2% but we have seen this story play out one too many times before. Equities sentiment tends to hold up well in early European trading before turning the corner later on in US trading. European indices were down earlier on but are now flattish, although I wouldn’t rule out a drop if yields trend higher again in the session ahead.

Going back to FX, the only real mover has been the aussie and kiwi. The former is leading from the back after the RBA held the cash rate unchanged, with AUD/USD down to its lowest levels since November at 0.6320 currently. From earlier: AUD/USD stays under pressure as RBA stays on the sidelines

In the bigger picture, it’s still all about the bond market right now.