Dollar makes a U-turn and trades towards the lows for the day
Risk continues to keep more buoyed as European indices are pushing further gains and S&P 500 futures have also climbed to positive territory now - after having been down by as much as 26 points or 0.7% earlier in the session.
Adding to that, US 10-year yields are also up by 2 bps to 1.05% and that is reflecting some added positive risk tones as we also see the likes of oil switch to gains on the day.
Back to FX, commodity currencies are at session highs against the greenback as such with NZD/USD in particular looking to contest two-week highs:
The bounce comes after the nudge lower earlier stalled at the 200-hour moving average (blue line) and buyers are looking to push past minor resistance around 0.7223-25 to target the 61.8 retracement level @ 0.7232 as well as the mid-January highs around 0.7240.
Elsewhere, EUR/USD is up to 1.2140 while GBP/USD has rebounded from a low of 1.3610 to 1.3680 currently - testing its 100-hour moving average.
Despite risk sentiment turning around, I'd still argue that we remain on shaky ground for the most part. All eyes are still on the Fed tomorrow and in the meantime, anything goes.
