The buck is tied at the shoelaces with US yields again
Us 10 year yields have had a little look a under 2.40% and that's led to the dollar creeping a few pips lower.
The failure to hold above 2.50%, and more so break above the Jan highs, leaves yields looking vulnerable again. The lower highs point to trouble.
US 10 year yields
2.32-2.30% is the important line here and a break there could be very bad news for the buck. That said, when assessing the bond/FX link, there's always a point where FX fundamentals kick in over bond moves, which then puts the brakes on FX. A sharp move in bonds may be followed by a similar move in FX but then, when we hit important levels in FX, the moves will slow or the link will become detached for that moment.
