Dollar holds steady so far in the new week

<p>It's mostly a quiet start to proceedings in European trading today. The dollar continues to hold steady, maintaining its run higher from Friday after the strong US jobs report. <a href="https://www.forexlive.com/news/the-bond-market-remains-a-key-focus-in-trading-this-week-20240205/" target="_blank" rel="follow">The bond market remains a focus point</a>, with higher yields helping to underpin the greenback at the moment.</p><p>10-year yields are up 5 bps to 4.083%, keeping the dollar in a good spot as we get stuck into the new week. EUR/USD is one of the more interesting major currency pairs to watch as it threatens a bigger technical drop:</p><p>The pair is falling below its 100-day moving average (red line) now and that will see sellers exert more downside control. Upon a firm break of that, the December low of 1.0723 will be under fire next.</p><p>And this comes despite traders paring back ECB rate cut bets a fair bit. The odds of an April rate cut are now at ~64% after having been fully priced in at one point last week.</p><p>Elsewhere, USD/JPY remains calmer so far today though as it keeps little changed near 148.40. But gold is down 0.8% to $2,022 with the rebound in bond yields since Friday weighing.</p>

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