The turnaround after the US CPI report from Wednesday continues. The dollar is advancing further in European morning trade today, with a weaker euro and yen contributing alongside a softer risk mood in markets. EUR/USD is now down 0.3% to near 1.0700 and that is its lowest level since 2 May.
The pair looks poised to test the 1.0700 mark now. And a firm break below that sees little in the way of a stronger downside shove towards 1.0600 next.
The euro is certainly being plagued by political issues in the region but the dollar itself is making steady headway in recovering this week. It’s pretty much a repeat of the price action in May after the CPI report for April at the time as well.
GBP/USD is marked down by 0.3% to 1.2725 while AUD/USD is down 0.3% to 0.6613 currently. There are some hints of risk aversion in markets at the moment and that’s helping to keep the dollar underpinned as well.
US futures are now lower, with S&P 500 futures down 0.2%. Meanwhile, 10-year Treasury yields are also now down 1 bps to 4.228% after having lingered around 4.26% earlier in the session.
This article was written by Justin Low at www.forexlive.com.
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