Dollar gains some ground as equities stumble lower

<p>Well, the calmer mood sure didn't last long. After a surge higher in bond yields yesterday, we are seeing a continuation of that with 10-year Treasury yields climbing to their highest levels so far this year. Yields are up another 8 bps today to 4.16% currently, following yesterday's hot ADP employment data.</p><p>And this is perhaps what is weighing further on equities after the turn of the month decline and news of the US credit rating being cut yesterday. S&amp;P 500 futures are now down 16 points, or 0.35%, while European indices are posting losses of around 0.9% to 1.1% currently.</p><p>In FX, this is lending itself to a slight bid in the dollar as it gains further ground this week. EUR/USD is already down 0.2% to 1.0915 to test key technical support as noted <a href="https://www.forexlive.com/news/eurusd-tests-key-technical-support-as-dollar-keeps-firmer-to-start-the-session-20230803/" target="_blank" rel="follow">here</a>. Meanwhile, AUD/USD is also pushing slightly lower again as sellers start to turn their attention towards testing 0.6500 next:</p><p>Amid the reemergence of safety flows, the yen is also benefiting with USD/JPY now falling from its earlier high of 143.90 to 143.25 on the day.</p>

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