August 16, 2024 at 12:28PM
The dollar is now ceding quite a bit of ground in trading today, reversing the nudge higher after the US retail sales yesterday. It comes alongside a shove lower in Treasury yields. 10-year yields are now down 5.5 bps to 3.871% and that is weighing on the greenback. At the same time, US futures are also looking shaky as S&P 500 futures are also down 0.1% currently.
Going back to USD/JPY, the drop comes as price action stalls at the 38.2 Fib retracement level of the swing lower since July – seen at 149.42.
It’s going to be a tricky session for the dollar to navigate as traders will have to look to themselves to keep up the form from trading yesterday. There won’t be much on the economic calendar to help unlike in the past few days.
Looking to other dollar pairs, EUR/USD is up 0.2% to 1.0990 with large option expiries holding the pair near 1.1000. Meanwhile, GBP/USD is up 0.4% to test 1.2900 and USD/CHF down 0.6% to 0.8675 currently.
This article was written by Justin Low at www.forexlive.com.
