Dollar gains slightly in European morning trade
This follows the drop yesterday in the greenback as we are seeing the market keep a more mixed tone so far this morning.
European indices are reflecting a mixed picture with S&P 500 futures now down 0.1% but is keeping little change throughout. Meanwhile, 10-year Treasury yields are off earlier lows of 1.105% to 1.122% currently - closer to flat levels on the day.
The slight advance in the greenback is more evident against commodity currencies with AUD/US down to 0.7740 and testing its 100-hour moving average again. Meanwhile, USD/CAD is pushing above its own 100-hour moving average @ 1.2730 to 1.2745.
However, the key pair to watch remains USD/JPY in my view and while price is trading back closer to 104.00, buyers need to show more mettle in breaking above the key trendline resistance levels to solidify any real dollar upside momentum.
Otherwise, the market is still pretty much caught in the push and pull as we await Biden's unveiling of the fiscal package tomorrow.
