It’s been a quiet one in terms of movement in European trading today. The dollar is steady as major currencies are showing very little appetite, with most dollar pairs seeing less than 10 pips change at the moment. It is only USD/JPY which is up slightly to 150.71, helped by slightly higher yields.

Besides that, there really isn’t much to work with on the session thus far. Risk tones are more muted as well with European indices seeing light changes while US futures are flattish. It seems like stocks are consolidating gains for now after the surging run higher yesterday.

Going back to FX, EUR/USD is still keeping just under its 200-day moving average of 1.0827 for now. Similarly, AUD/USD also attempted a run above its own 200-day moving average yesterday only to fall short amid the dollar reversal as well. The pair now trades little changed at 0.6559, below the key technical level at 0.6561.

As we look to wrap things up on the week, do keep an eye out on the bond market. 10-year Treasury yields are up 1.6 bps to 4.342% and that is just above its 100-day moving average of 4.327% currently. Further selling in bonds when we get to US trading could inspire some broader market moves before the weekend.

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