Things are starting to look a little bit more positive for dollar bulls as the weather gauge US 10Yr Treasury yields pushed higher on Friday up to 2.96% with the magic 3% not too far off now. The equity markets finished the day on the back foot on Friday but news over the weekend does seem to be more positive on the general risk front with geo-political issues, particularly between the US and China and the US and DPRK looking more optimistic with various meetings being organised. The dollar continued it’s recent recovery on Friday and into the start of trading today with the Dxy up at 90.40 and that major currencies sitting at the extremes of recent ranges.
It’s a big week ahead that could see considerable moves across the markets, we have a couple of big central bank meetings in the ECB and BOJ along with some significant US data releases. There’s a cautiously optimistic sentiment coming through the market and if this continues throughout the week we should see some currencies break out of their recent ranges and push into new trends.
Looking ahead to today’s trading and it’s pretty quiet in Asian before a raft of Manufacturing PMI numbers being released in Europe. There’s not much in terms of economic releases in the US today but with IMF meetings on going and trade talk still high on everyone’s agenda, the news wires could provide the catalyst for fresh moves.