The greenback falls to fresh lows on the day in European trading
USD/CAD is meeting fresh lows at 1.2735 currently, nearing a test of its 100-hour moving average (red line) at 1.2730. That will be a key level to watch as a break below will shift the near-term bias to being more neutral and discard some of last week’s momentum.
Elsewhere, AUD/USD is up 0.6% to near 0.7180 while NZD/USD is up 0.5% to 0.6860 despite New Zealand announcing a lockdown extension until 27 August.
The dollar is also seen lower against the euro and pound, though keeping higher against the yen as USD/JPY is up to 110.00 as 10-year Treasury yields climb up 2 bps to 1.28% amid a retreat in safety bets from last week.
In the equities space, European indices are holding decent gains while US futures are still up around 0.3%, so that’s a modest showing so far on the session for risk.
