US dollar slides as bonds continue to attract bids

<p>The US dollar is at the lows of the day across the board, led by an 80 pip decline in USD/JPY. The leg lower was kicked off by falling oil prices which weighed on Treasury yields and also helped to boost equities.</p><p>It's resulted in a risk-positive environment that's typical of USD softness. </p><p>A quick spot check:</p><ul><li>EUR/USD down 30 pips</li><li>USD/JPY down 80 pips</li><li>GBP/USD up 35 pips</li><li>USD/CHF down 37 pips</li><li>Commodity currencies flat, erasing earlier declines</li></ul><p>USD/JPY has been a real roller-coaster to start the year and is now challenging the post-ISM low from Friday.</p><p>The risk with everything trading off of oil is that it can all reverse quickly. Oil got as low as $70.13 and is now back to $70.95 so some of that is already underway.</p><p>We also get a trio of Treasury auctions this week and that could push up yields as well.</p>

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