You’d never know by looking at the major FX pairs that US equities are rallying strongly, partly on hopes for a fiscal cliff deal.
EUR/USD is holding in a consolidation range, unable to challenge even overnight highs as protective selling ahead of large 1.3200 barriers keeps bulls at bay.
AUD us in a holding pattern at 1.0550 and USD/JPY is firm but not making new ground after a frantic rally following the smashing LDP victory in Japan over the weekend.
US bond yields continue to ratchet higher, a broad support for the dollar, as we come close to a 1.75% in the 10-year note.
