The dollar is trading weaker despite the slightly cautious risk tone
Stocks are lower, bonds are firmer, but the dollar is weaker. One of these is not like the others in trading today but that is how the market is playing out in European trading.
European equities are keeping on the back foot with US futures also seen down by 0.5% although Nasdaq futures are holding up, keeping closer to flat levels for now.
But 10-year Treasury yields are down by 2 bps to 0.886% and that is weighing on USD/JPY as well as the pair slips to a session low of 104.17.
In the currencies space, the dollar is keeping weaker overall as EUR/USD rises to a session high of 1.1885 while GBP/USD is pulling towards a high of 1.3270 with a little help from a Brexit pop earlier here.
Elsewhere, AUD/USD is trading a little higher at 0.7331 but is still facing resistance closer to 0.7340 on the day.
Going back to EUR/USD, the 1.1900 handle will be a key spot to watch as price action continues to favour buyers in testing the figure level at some point today.
Break above that and buyers may establish more momentum to drive towards daily resistance closer to 1.1965 and potentially 1.2000 next.
However, just be mindful that the currencies movement in Europe today is running against a largely more cautious risk backdrop at the moment.
Regional stocks are mostly a little lower and US futures are also reflecting some fading enthusiasm after the vaccine optimism yesterday.
That may yet see the dollar hold its ground with USD/JPY also still above 104.00, GBP/USD still below 1.3300, USD/CAD hugging its 200-hour moving average @ 1.3068, AUD/USD just below near-term resistance of 0.7340, and NZD/USD keeping around 0.6900 still.
