Dollar holds slightly higher so far on the day

Typically, dollar sentiment would be inversely correlated to risk optimism but that's not quite the story so far today. While markets are breathing a sigh of relief as the banking turmoil ebbs, the dollar is also gaining some ground alongside higher bond yields on the day.

USD/JPY in particular is up over 100 pips to near 132.00 but I would say that perhaps owes to some catch up to higher yields after the pair did track lower in trading yesterday instead:

I don't see any major reasons for that but perhaps there were some heavy flows in Asia yesterday that might have come from the Japan fiscal year-end repatriation. Either way, we are seeing price action adjust accordingly at the moment.

Elsewhere, EUR/USD is down slightly by 0.1% to 1.0830 currently but sitting within a roughly 30 pips range on the day. GBP/USD is also lower by around 0.1% to 1.2325 after a slight two-day advance to start the week.

The antipodeans are among the laggards though surprisingly, with AUD/USD down 0.5% to 0.6675 and NZD/USD down 0.3% to 0.6235 at the moment. That comes despite more positive risk sentiment reflected in the equities Equities Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Read this Term space to start European trading.