The US dollar is at the highs of the day on a number of fronts and that’s pushed EUR/USD down 42 pips to 1.0671, breaking yesterday’s low.

The catalyst might be fixed income, where US yields are up 1-3 bps across the curve and at session highs. The RBA hike may have convinced some that global central banks will need to hike further. For what it’s worth, Fed fund futures still price just a 25% chance of a hike in June, though that rises to 80% in July.

A further leg of US dollar strength would need some help from stock market selling.

This article was written by Adam Button at www.forexlive.com.