FX lightly changed ahead of European morning trade

The push and pull among major currencies is continuing since last week. The dollar looked like it might finally break lower early yesterday but turned things around as yields jumped higher. The latter weighed on the risk mood and that also helped to keep the dollar supported to start the week. Here’s a snapshot of things today:

The changes are relatively light mostly but there are some notable developments since yesterday.

EUR/USD has backed away from its April high of 1.0885 while USD/JPY has climbed back up above the 157.00 mark.

The aussie was a little higher earlier after the monthly CPI numbers from Australia here. But it has given all of that back amid a more cautious risk mood. Tech shares drove higher yesterday but the S&P 500 still ended up near flat, and futures are pointing down by 0.3% so far on the day.

There’s going to be a lot of moving parts to watch out for in the days ahead. The chief among them are the technicals, month-end flows, risk sentiment, and upcoming US data on Thursday and Friday.

So, that will make for a trickier test for traders as we look to wrap up the month of May.

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