The dollar might’ve opened with a slight gap higher today but didn’t do much with it. It is arguably a kneejerk reaction to the Trump shooting but did that really change the big picture outcome? Not quite I would say, at least considering Trump was already odds on to defeat Biden in November. But this perhaps solidifies that case, albeit emotions are still running high.
In any case, major currencies have quickly settled down with the dollar giving that back. EUR/USD is now flat on the day just above 1.0900, though large option expiries close to the figure level might keep gains in check.
The June high at 1.0916 is also one to watch, offering some added resistance on the day.
Besides that, USD/JPY is also trading back to flattish at 157.85 after having nudged up to around 158.20 earlier in the session. GBP/USD is also near flat at 1.2985 after having touched a low of 1.2960 in Asia trading.
The move comes as stock futures continue to rip higher though. S&P 500 futures are up 0.4% now, providing some added optimism to the broader risk mood today. As for Treasury yields, the earlier jump is also slightly tempered with. 10-year yields are now up just 2.3 bps to 4.21% from near 4.24% at the start of the day.
This article was written by Justin Low at www.forexlive.com.
Source link
