The greenback has pared losses against the euro, pound, loonie, aussie and kiwi on the session now, trailing just behind the yen and franc. Even then, the dollar has moved off earlier lows and is actually posting slight gains against the pound and loonie notably. This comes as Treasury yields pull higher after a bit of a drop earlier, with 10-year yields now back up by over 4 bps to 2.72%:

Now, it is still early in the day and a technical breakdown in yields could still yet materialise. But for now, there is some apprehension and dollar bulls are making full use of that sentiment.

EUR/USD is back to near unchanged around 1.0200 with large expiries seen at 1.0200-05 as well as 1.0245-50 – which has pretty much been the range in European morning trade.

Meanwhile, GBP/USD has stumbled from a high of 1.2245 to 1.2150 now, falling back below the 50.0 Fib retracement level at 1.2213. That will be a key level to watch ahead of the daily close.

USD/CAD is also trading back up by 0.2% to 1.2830 now after having slipped to a low of 1.2790 earlier. And we have AUD/USD turning flat at 0.6985 after having hit a high of 0.7030 at the start of the session, now keeping back below the key 0.7000 handle.

I highlighted key levels on the charts earlier here and they are still very much in play.

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