Dollar loses light ground to start the session

The dollar is trading slightly lower to start European morning trade as market flows are proving rather mixed at the moment.

Treasury yields are lower and so are equities but the likes of the euro are higher, whereas gold and oil are still consolidating losses on the day. It’s hard to make sense of the flows to be honest.

10-year Treasury yields are down 3 bps to 2.11%. S&P 500 futures are down 0.5%. But EUR/USD is creeping higher to just above 1.1000:

Of note, price action is starting to move above its key hourly moving averages @ 1.0967-85. That has been a key area that sellers have been leaning on for the past few sessions.

This comes as the dollar is also seen lower against the yen with USD/JPY down 0.2% to 117.85. Meanwhile, GBP/USD is up over 0.3% to 1.3050 after coming close to a test of 1.3000 earlier.

Besides some general pushing and pulling, it’s hard to really draw much conclusions from the market at this stage. Let’s see if we will get a more coherent view of the picture in the hours to come.

The Fed meeting tomorrow isn’t going to make it easier to read into the moves for now.