US dollar softens as the Nasdaq stretches gain to 1.4%

It’s a feeding frenzy in the Nasdaq today despite a worrisome US inflation report and rising Treasury yields. All the elements are in place for equity market selling but we’re getting the opposite.

Chipmakers and some other high-flying stocks are leading the way again, pushing the Nasdaq 1.4% higher in a defiant show of strength.

The FX market generally takes its cues from fixed income and US 2-year yields are up 5.6 bps today but currencies are finding the stock market increasingly difficult to ignore. The dollar has been edging lower for the past two hours and is at US-afternoon lows.

This article was written by Adam Button at www.forexlive.com.