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Dollar slides further on the session as bond yields fall

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How quickly things can change. As we got into Friday trading last week, the dollar was in a firm position all before some dovish Fed talk came in and things swung back the other way around. Fast forward to today and that reversal momentum has intensified with the dollar technicals falling apart against the major currencies.

EUR/USD has moved up to 1.0035 and above parity for the first time in five weeks as noted here while GBP/USD is up over 100 pips on the day as it comes up for air in a push to 1.1580. I pointed out some technical considerations for the latter here. Meanwhile, USD/JPY is now tracking below 148.00 in a push to fresh lows since Monday:

This comes as Treasury yields are sliding further, with 10-year yields now down 8 bps to 4.03%. As mentioned earlier, that is a far cry from the peak on Friday at 4.335% – which came before all the dovish Fed talk. The rally in bonds yesterday translated to dollar selling and we are seeing more of that now in European trading.

Elsewhere, AUD/USD is up 1.4% against the dollar to 0.6485 and is looking for a push towards 0.6500 next: