Dollar slightly on the backfoot ahead of European trading

Risky tones remain more optimistic but the treasury yields are lower

Shares remain calm to start the new week with U.S. futures looking more optimistic in early trading, with S&P 500 futures and Dow futures both up 0.4% while Nasdaq futures up 0.3% ahead of European morning trading.

This helps slightly promote commodity currencies with USD / CAD down 0.2% to 1.2627 and AUD / USD up 0.3% to 0.7282 at present.

The first is targeting tiny support around the 1.2600 region, while the second is catching a bit of a pullback around its key hourly moving averages @ 0.7262-77 (buyers are now grabbing some near-term control), with a small resistance seen @ 0.7315.

Elsewhere, the dollar hasn’t changed much, as ranges are still relatively narrow although USD / JPY is falling slightly to 110.55 as treasury yields hold lower.

The technical break higher last week allowed 10-year yields to climb to a high of 1.466% but we see a slight pullback now to 1.445% but a look at the chart suggests we could still see yields extend higher in the coming sessions. , so just be careful.

Therefore, the light push lower in USD / JPY does not matter with the focus even more on trying to test key daily resistance at the 110.60-80 region.

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