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The dollar is keeping in a mixed spot as major currencies recover some ground against the greenback after the moves yesterday.
However, the yen continues to be offered across the board with USD/JPY breaking above 109.00 as the upside momentum extends further today.
EUR/USD is nearing a test of its 200-day moving average @ 1.1829 and while the pair is keeping a little higher today, buyers have to do a lot more to convince of a turnaround.
All eyes will be on the bond market and if Treasury yields will threaten a further breakout to the upside, with 10-year yields still finding it tough to keep above 1.60% for now.
The Treasury auctions today and tomorrow (especially the latter) will be ones to keep an eye out for, since there won't be any help from the Fed until next week.
ECB PEPP data yesterday was said to be impacted by high redemptions again and that puts increased scrutiny on the central bank to do something on Thursday this week.
For now, risk is keeping in a calmer spot but things can change rather quickly depending on how the market takes to the narrative in Treasuries.
I mean, we're all pretty much bond traders now - one way or another.
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