Dollar keeps steady so far in European morning trade

FX is reflecting light changes on the day as we also see Treasury yields pull back from the highs earlier in the day. The dollar is mostly steady, keeping a slight advance across the board currently. But the changes are rather minimal so it is tough to really draw much conclusions for the time being.

Looking at Treasuries, 10-year yields are now down to near 2.37% from above 2.41% earlier. In turn, that is pinning USD/JPY down just below 121.00 again after having hit a high of 121.40 in Asia Pacific trading.

The pair is still up 0.1% on the day but it has been a bit of a climb down from the peak earlier.

Elsewhere, EUR/USD is also down a touch to 1.1015 from around 1.1040 earlier with the 100-hour moving average @ 1.1042 limiting gains today. Meanwhile, GBP/USD is down from near 1.3300 to 1.3225 as the pair drops to session lows upon testing the 38.2 retracement level @ 1.3286 on the daily:

Yen pairs are still the main ones to watch in the FX space but a lot of that will be tied to the moves in the bond market, so be sure to keep an eye on that as well when viewing the latest twists and turns in trading sentiment.