The dollar is giving back some gains from yesterday in European morning trade, as we see the selling in equities and bonds hit pause for the time being. Even though 10-year German bund yields is hitting its highest in 8 years around 1.20%, 10-year Treasury yields are down 1.6 bps on the day to 2.915% and that is keeping the dollar in-check.
European equities and US futures are also holding slight gains as seen here and that is helping to keep investors more relaxed in trading during this London holiday.
Taking a look at dollar pairs on the day:
Both EUR/USD and GBP/USD are up by 0.4% on the day to 1.0690 and 1.2538 respectively but are pretty much painting the same picture. They are merely paring back some of the losses from yesterday but price action is keeping below the key hourly moving averages and that suggests that sellers are still in near-term control.
As such, the key hourly moving averages for both pairs at 1.0706-23 (EUR/USD) and 1.2577-94 (GBP/USD) will be key resistance points to watch in case buyers try to recover further ground on the day.
For EUR/USD though, just be wary of large option expiries above 1.0700 that could cap any upside momentum today.
Elsewhere, USD/CHF is down 0.4% as well to 0.9590 after hitting a low of 0.9575 earlier as pointed out here. Meanwhile, AUD/USD has recouped losses from earlier today in a push up from 0.7150 to 0.7180 and NZD/USD likewise from 0.6475 to near 0.6500 at the moment.