European indices have turned lower and US futures are now barely staying afloat as risk appetite is sapped in European morning trade. That is seeing dollar bids return and after some slight losses earlier, the dollar is now trading higher against the pound, loonie, aussie and kiwi.

Cable has seen a dip towards 1.2100 for the first time since May 2020:

As mentioned earlier here, the dollar’s earlier drop doesn’t hold much technical significance and owes more to the market seeking a bit of a breather. But as risk starts to show some nervousness again, it’s easy pickings for the greenback.

GBP/USD continues to look poised for a run towards 1.2000, all things considered.

Elsewhere, EUR/USD has also fallen from 1.0485 to 1.0435 at the moment while the yen is a notable beneficiary with bond yields (at the longer end of the curve at least) retreating on the session so far. USD/JPY is down 0.2% to 134.15 as the push and pull continues just below the 135.00 handle.

This article was written by Justin Low at www.forexlive.com.