The heavier bond yields today isn't quite affecting the dollar so much yet in European morning trade. It's a quiet start for the greenback as it holds more mixed against the major currencies bloc for now.
EUR/USD is little changed at 1.0870 levels, stuck in a 28 pips range with large option expiries also in play. Meanwhile, USD/JPY is down 0.4% to 145.30 and that owes a fair bit to lower yields as highlighted earlier here. And then, we have the pound which is down 0.2% against the dollar after the poor UK retail sales data.
That said, all the moves are relatively measured when put into context the trading ranges so far this week. USD/CAD and AUD/USD are both flattish at around 1.3545 and 0.6400 respectively while NZD/USD is up 0.1% to 0.5930 and USD/CHF up 0.2% to 0.8800.
It's not really hinting at much but keep an eye out on the bond market and USD/JPY for further clues I would say.
