The dollar remains in a solid spot to start the week, helped out by a continued push higher in Treasury yields. 10-year yields in the US are now up to 4.55%, its highest levels in 16 years:
That continues to drive better sentiment in the dollar with EUR/USD breaking below 1.0600 yesterday to its lowest levels since March. Meanwhile, USD/JPY is still staying in the hunt towards the 150.00 mark even as we are in BOJ intervention territory.
Elsewhere, US stocks saw an improved showing yesterday but are giving back gains today with futures holding lower. As higher yields continue to reverberate, that will keep the pressure on equities especially if major central banks - the Fed in particular - are able to stick with the higher rates for longer narrative.
In trading this week, month-end flows will also be a focus so just be wary of that alongside some other smaller economic releases during the week.
I wish you all the best of days ahead and good luck with your trading! Stay safe out there.
