The mood among major currencies today is more mixed but overall, the dollar is still in a good spot all things considered. EUR/USD is little changed at 1.0550 currently but is hovering closer to lows near 1.0500 while topside is being managed by the 23.6 Fib retracement level at 1.0643. Meanwhile, USD/JPY is waiting on an opportunity to pounce to test the 150.00 mark once again as higher Treasury yields continue to underpin the pair in the bigger picture:
After hitting fresh highs in early October, the dollar has ceded some ground but we're not at any reversal point just yet.
GBP/USD is down 0.3% to 1.2180 at the moment as well but that owes to softer UK jobs data earlier here. Elsewhere, AUD/USD may be up 0.3% today to 0.6360 but the pair continues to be pinned down by key resistance at 0.6500 while holding on to some short-term support at 0.6300 for now.
As much as an unwinding of risk-off flows from the Israel-Hamas conflict might hamper dollar sentiment, higher Treasury yields is still something that is working in favour of the greenback right now.
And that to me, is the bigger picture focus and is still a key reason why the dollar is staying in a good spot overall. So, until there is reason for bonds to stop the rot, it is tough to find fault with the dollar as the technicals are also holding up for now.
