And so, the new week is pretty much only getting started today. The dollar continues to sit in a good spot as markets continue to weigh up higher odds of another rate hike by the Fed. Looking at Fed funds futures, there is now a roughly 61% probability of a 25 bps rate hike for June. The higher for longer narrative is now winning out again.
In case you missed it, I highlighted the change in the curve in this post yesterday here.
For now, the dollar continues to sit in the driver's seat and is staying in control against the major currencies bloc. EUR/USD is little changed but keeping near 1.0700 while USD/JPY is continuing to hold above 140.00 so far today.
One of the more interesting charts right now is AUD/USD though, as the pair is down 0.4% to 0.6510 after a nudge to 0.6560 earlier in the day. Sellers are certainly looking poised for a retest of the 0.6500 mark in the short-term:
