The dollar is coming under some pressure as we transition from Asia to Europe, falling to fresh lows on the day. There’s not much major headlines floating about but there are some rumours of a so-called “China re-opening committee” being formed – which may be behind the surging rally in mainland China and Hong Kong stocks today. (h/t @ Trading Floor Audio)
In broader markets, S&P 500 futures are up 24 points, or 0.6%, while 10-year Treasury yields are down 5.4 bps to 4.023%. Those are also contributing factors to the dollar’s slump so far on the day. USD/JPY is down 0.5% to below 148.00 now:
The pair pushed higher after the BOJ left monetary policy unchanged on Friday last week but one has to be wary as to whether or not there are cracks starting to show in Japan’s resolve.
Elsewhere, EUR/USD is up 0.5% to 0.9930 and GBP/USD up 0.6% to 1.1540 after a brief dip below 1.1500 overnight. AUD/USD is up 0.7% to 0.6440, brushing aside the drop suffered after the RBA chose to raise its cash rate by a measly 25 bps earlier today.
