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This carries over from the push and pull towards the second half of last week. The dollar fell after the US CPI report but held its ground a little after, before easing back again towards the closing stages on Friday. That’s not giving traders too much to work with as we look to get into European morning trade today.
As seen above, major dollar pairs are less than 10 pips changed at the moment. And that pretty much signals a snoozefest.
In the bond market, the rebound in 10-year Treasury yields is playing a role in limiting the dollar’s losses – at least for now. Yields are back up to 4.42% currently, nearly erasing the entire drop after the US CPI report last week. The low touched 4.31% in early Thursday trading at the time.
Going back to FX today, EUR/USD has a couple of large option expiries in play and that will also help to keep price action more contained in the session ahead.