Dollar trades more steadily on the day, eyes stay on the Fed tomorrow

<p>The greenback is trading in a steadier mood so far today, mostly little changed against the other major currencies. USD/JPY is a touch lower on the day but European currencies are also keeping lower against the dollar. Here's a snapshot of dollar pairs at the moment:</p><p>As Treasury yields are keeping lower, USD/JPY remains one of the more interesting pairs going into the Fed tomorrow. The pair is keeping around 147.40, just under its 200-day moving average of 147.52 currently. Keep below that and sellers could eye a break to the downside if Powell provides some supportive argument on Wednesday.</p><p>Meanwhile, EUR/USD is holding a break below its own 200-day moving average of 1.0841 on the week. However, bids at the 1.0800 mark is still providing some support for the time being. And it could keep that way until the Fed settles the score tomorrow.</p><p>As for trading today, <a href="https://www.forexlive.com/news/treasury-yields-continue-to-dribble-lower-today-20240130/" target="_blank" rel="follow">keep a watchful eye on the bond market</a>. If Treasury yields continue to slide lower in the session ahead, that is likely to drag the dollar lower as well at the balance.</p>

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