The tension and attraction between major currencies has continued since last week. The dollar looked like it might finally fall early yesterday, but turned things around as yields rose. The latter influenced the risk-on sentiment and also helped maintain dollar support to start the week. Here's a quick look at things today:
The changes are relatively mild for the most part but there are some notable developments since yesterday.
The EUR/USD pair retreated from the April high of 1.0885 while the USD/JPY pair rose again above the 157.00 level.
The Australian dollar was slightly higher earlier after the monthly CPI numbers were released from Australia here. But she brought it all back in a more cautious risk-taking mood. Technology stocks rose yesterday, but the S&P 500 ultimately remains nearly flat, with futures pointing to a 0.3% decline so far on the day.
There will be a lot of moving parts to pay attention to in the coming days. The most important of which are technical data, end-of-month flows, risk sentiment, and upcoming US data on Thursday and Friday.
Therefore, this will create a tougher test for traders as we look to the conclusion of May.
