Dollar mostly lower so far but the yen is struggling even more

<p>There seems to be a bit of pushing and pulling in markets at the moment, and I would say that something's gotta give in due time. The dollar is mostly lower across the board, with it only gaining against the Japanese yen today. That comes as Treasury yields are pushing back higher on the session with 10-year yields now up 4.3 bps to near 3.95%.</p><p>Elsewhere, the dollar is down against the European currencies as noted <a href="https://www.forexlive.com/news/euro-and-sterling-hold-slight-gains-after-pmi-deluge-20240104/" target="_blank" rel="follow">here</a> and also down just slightly against the commodity currencies. USD/CAD is down 0.3% to 1.3318 while AUD/USD is up 0.2% to 0.6740, though the latter has large option expiries at 0.6755 to contend with as well.</p><p>It is a bit of a mixed bag as equities are slightly higher but bond yields as well, then you couple that with the action in major currencies above. It seems like traders are trying to find some answers on the week but for the day itself, there are some conflicting convictions. I reckon it's going to be all about <a href="https://www.forexlive.com/news/us-dollar-slides-alongside-treasury-yields-the-week-to-close-out-with-a-heavy-data-slate-20240103/" target="_blank" rel="follow">where the data takes us</a> in the closing stages this week it would seem.</p>

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