After taking a break during yesterday’s session, the greenback has regained its momentum overnight gaining against all of its major counterparts.
The Bloomberg Dollar index rose to a fresh three-month high as 10-year treasury yields held at 3.0%.
The dollar was able to rally over a percent against the Mexican peso (weakest MXN since January) and South African rand as global equities ran lower. The Australian dollar fell to a four month low against its America counterpart on thin trading as markets in Australia and New Zealand were closed for ANZAC holiday.
There is no major data set for release today in the United States, so look for the greenback to continue to try to set new, stronger ranges against its rivals. Volatility could spike again tomorrow as Durable Goods orders are set for release at 8:30 a.m.
After ticking higher yesterday, the Euro is again trading on its back foot this morning. EUR/USD is near the bottom of recent ranges and at a 7-week low, however there is expected major support at its March 1st low. We are currently trading only 30 basis points away and without much in the way of data, the current level may be the near-term best for the greenback. There was only second tier data slated in the Eurozone today so the pair is trading on technicals and with the yield on the US 10-year.
Tomorrow, the European Central Bank will release its interest rate decision. It is widely expected that the central bank will leave its current policy on hold.
The Japanese yen is weaker again this morning and is set for its sixth daily loss versus the greenback which would be the worst run for the yen since October 2016. The yen is lower even as global stocks were lower overnight and U.S. stocks dumped more than 2.0% of its value. Overall, the yen is at its weakest level since February 9th, showing a reversal from the haven rally it experienced earlier this year as trade war worries set into fx markets.