Dollar extends gains in European morning trade

<p>From earlier:</p><ul><li><a href="https://www.forexlive.com/news/eurusd-eyes-steeper-drop-as-dollar-holds-firmer-across-the-board-20240116/" target="_blank" rel="follow">EUR/USD eyes steeper drop as dollar holds firmer across the board</a></li><li><a href="https://www.forexlive.com/news/usdjpy-revisits-last-weeks-highs-on-firmer-dollar-20240116/" target="_blank" rel="follow">USD/JPY revisits last week's highs on firmer dollar</a></li></ul><p>The moves are continuing with EUR/USD now down 0.5% to 1.0890 while USD/JPY is up 0.6% to 146.53 on the day. The latter is now trading to its highest in a month as the dollar stays bid in European morning trade.</p><p>10-year Treasury yields are up 5.5 bps to 4.005% upon the return from the long weekend while softer risk tones are also helping to keep the greenback underpinned. European indices are lower across the board with S&amp;P 500 futures keeping down by 0.5% currently.</p><p>Going back to the dollar, GBP/USD is also down 0.5% to 1.2655 while USD/CAD is contesting a break of its 200-day moving average of 1.3480 currently:</p><p>The technical developments are certainly working in favour of the dollar right now as such. And looking at the antipodean currencies, both AUD/USD and NZD/USD are tracking to fresh one-month lows at 0.6610 and 0.6160 respectively.</p>

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