The dollar sees its recent advance stall as traders try to figure things out despite the lack of major economic data releases this week. I’ll dig deeper into the charts later by analyzing changes in short-term sentiment toward the dollar. But for now, we see dollar bulls regaining some control over the week.
Yesterday’s drop in the dollar also comes amid falling Treasury yields. 10-year yields fell from 4.65% to 4.58% and are now hovering around 4.57% as we look to European trading. This helps keep things under control as we see more of a push and pull feeling this week.
Daily chart of 10-year US Treasury yields (%)
It seems almost normal now that larger movements are expected in the markets in weeks where there is Big Data and/or major central bank decisions. Between this, there is generally a rather consolidating atmosphere. And that’s arguably what we’re seeing in trading so far this week.
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