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The dollar is mildly weaker to start the day but major currencies are largely keeping within narrow ranges still to start European morning trade.
Once again, the market is hinting at mixed signals as we see equities adopt a more cautious approach alongside bonds with 10-year Treasury yields down 1.6 bps to 0.84%.
But the greenback is still finding it tough to gather any momentum but at least it isn't breaking down from a technical perspective.
It is still all about the push and pull with the S&P 500 having held up a defense of the 3,600 level yesterday but futures are pointing towards testing that and the 3,588 level for the time being, with S&P 500 futures down 0.4%.
We'll see if buyers will have the appetite to defend that later on in the day as the vaccine optimism from Monday continues to wane further.
In the currencies space, we're still sort of caught between two minds with the dollar seen vulnerable but not breaking any key levels just yet.
EUR/USD is still below 1.1900, GBP/USD still below last week's high near 1.3300, AUD/USD also holding below last week's high of 0.7340, NZD/USD struggling to breach 0.6900.
And we are also seeing USD/JPY contest the 104.00 handle but not really chasing a firm break below the figure level, so that is keeping the dollar somewhat afloat.
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