European stocks back in the green now
European indices are now in positive territory after a softer start, but I would argue that the risk mood remains more tepid for the time being with US futures seen up by ~0.1% and generally little changed for the most part.
Elsewhere, gold is still maintaining modest gains of a little over 1% and keeping just above $2,000 while Treasury yields are lower but off earlier lows. 10-year yields are down by 1.3 bps to 0.675% from a low of 0.659% earlier in the session.
In the currencies space, the pressure is still on the dollar as it sits in a precarious spot as we look towards North American trading today.
The big question will be is it a bend but don't break situation for the dollar or is this where sellers finally gather enough momentum for the next leg lower?
Looking over to USD/JPY, price action is continuing to favour sellers on a break below the key near-term levels i.e. key hourly moving averages.
But the momentum is somewhat stalling around the 50.0 retracement level @ 105.62.
The key spot to watch for in the pair will be Treasury yields as a further drop will keep the yen underpinned and a move towards or under 105.00 could also exacerbate further weakness in the dollar over the next few sessions.
As for buyers, they still have much work to do in reclaiming some semblance of near-term control with the 200-hour MA (blue line) seen @ 106.25.