Dollar falls broadly today and stays weak as markets enter into US session. The underlying cause of this sell-off remains somewhat ambiguous, as there were no significant economic data releases to directly attribute the currency's selloff. The slight retreat in treasury yields, specifically the 10-year yield just gyrating between 4.35-4.40, appears insufficient to solely account for the Dollar's dip. Additionally, market sentiment does not clearly lean towards risk-on, evidenced by European indexes trading in the red while US futures saw marginal rises. This situation raises questions about whether traders are preemptively betting on the anticipated US CPI data set for release tomorrow.
The US Dollar (USD) remains afloat after a very lackluster start of the trading week. The Greenback did not move that much on Monday and only eased a touch after Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed
A negative start to the week saw the Greenback under pressure, while the risk complex managed to regain some composure and US yields climbed slightly across the curve.
Another positive week saw the Greenback reclaim the area beyond the 104.00 hurdle, advancing modestly on a weekly basis against the backdrop of the mixed performance in US yields and Fedspeak supporting a tighter-for-longer Fed’s stance.