<p style=““ class=“text-align-justify“>After the early bids in the dollar to start the session, things have been fairly calmer in European trading today. The hotter core inflation reading in the Eurozone CPI report did push regional bond yields higher for a brief period, before easing a little. 10-year German bond yields moved to 2.76% before retreating back to 2.72% now, just marginally higher on the day.</p><p style=““ class=“text-align-justify“>That said, 10-year Treasury yields are still holding above the 4% mark – now seen at 4.02% – and that is enough to keep the dollar underpinned. USD/JPY did saw a pushback against its key technical level <a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-looks-for-further-upside-correction-on-higher-yields-20230302/“ target=“_blank“ rel=“follow“>here</a> to 136.25 but is now trading back up by 0.4% to 136.70 on the day.</p><p style=““ class=“text-align-justify“>The momentum is still mostly in the dollar’s favour, with equities still struggling. S&P 500 futures are down 13 points, or 0.3%, but it must be said that it was down by as much as 31 points earlier in the session.</p><p style=““ class=“text-align-justify“>Still, the dollar is higher across the board with EUR/USD down 0.3% to 1.0630 – just above the <a target=“_blank“ href=“https://www.forexlive.com/Orders/fx-option-expiries-for-10am-new-york-cut-20230302/“ target=“_blank“ rel=“follow“>large option expiries</a> today. Meanwhile, GBP/USD is down 0.4% to 1.1980 after testing key levels outlined <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-faces-pressure-at-key-technical-levels-once-again-20230302/“ target=“_blank“ rel=“follow“>here</a>. Against the antipodeans, AUD/USD is down 0.4% to 0.6732 while NZD/USD is down 0.6% to 0.6225 at the moment.</p><p>For now, the bond market remains in charge and we’ll have to see if that hold above 4% in 10-year Treasury yields can stay the course through to US trading later.</p>

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