The greenback is the best performer on the day so far among the major bloc
Markets are a funny thing, and it is interesting to know that no same thing works the same way all the time. The past two weeks have seen weakness in the dollar despite rising yields, but the breakout in yields today is starting to give the dollar a lift on the day.
In particular, USD/JPY has been the biggest beneficiary of that - rising to a high of 109.06 today. US 10-year yields touched above 2.70% earlier, and it looks like for today that correlation is playing a part in helping to bolster the dollar. But it's still somewhat early to call if we are going to see said correlation resume old habits after just half-a-day:
The swissie is the laggard on the day so far as earlier talks of intervention by the SNB spurred leveraged buying in USD/CHF only to be met by sellers. But the pair is rising once again in the European trading session and is near session highs of 0.9385.
There's not much on the calendar that will move things along today, but there is US PCE inflation numbers due in the US session. It's the Fed's preferred measure of inflation. The expected number for the core y/y is +1.5%, similar to the prior reading.
If anything, that will act as some form of litmus test for the dollar strength in today's trading so far.
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