Dollar keeps steadier on higher yields, cautious risk mood

Bond yields are sitting higher after the UK CPI report earlier and that is helping to prop up USD/JPY a little. The pair is up 0.2% to 156.47 as it continues to close in on last week’s high at 156.78. This comes with 10-year Treasury yields being up 2.9 bps to 4.443%.

Besides that, the greenback is holding a light advance against the likes of the euro, franc, aussie and loonie. It is up just 0.1% against those currencies.

The pound and kiwi are the only ones seen higher against the dollar but they owe to other instances. And even then, we’re seeing both currencies lose some ground after earlier gains as well.

GBP/USD is down to 1.2728, up 0.2% on the day, after a high of 1.2761 earlier following the UK CPI report. Meanwhile, NZD/USD is down to 0.6115 from a high of 0.6153 earlier after a slightly more hawkish RBNZ at the balance.

In the equities space, European stocks are down across the board while S&P 500 futures are also lower by 0.1%. And the more cautious risk mood there is also helping the dollar find a better footing on the week.

This article was written by Justin Low at www.forexlive.com.