The US dollar is at the lows of the day across the board, led by an 80 pip decline in USD/JPY. The leg lower was kicked off by falling oil prices which weighed on Treasury yields and also helped to boost equities.
It's resulted in a risk-positive environment that's typical of USD softness.
A quick spot check:
- EUR/USD down 30 pips
- USD/JPY down 80 pips
- GBP/USD up 35 pips
- USD/CHF down 37 pips
- Commodity currencies flat, erasing earlier declines
USD/JPY has been a real roller-coaster to start the year and is now challenging the post-ISM low from Friday.
USDJPY 10 mins
The risk with everything trading off of oil is that it can all reverse quickly. Oil got as low as $70.13 and is now back to $70.95 so some of that is already underway.
We also get a trio of Treasury auctions this week and that could push up yields as well.