USD Continues to Retreat, Is This the End of the 'King' This Week?

<p>&nbsp;The US dollar continued to retreat further from its 10-month high heading into the end of the week, September and the third quarter.</p><p><br /></p><p>During the European session, the dollar index that measures the strength of the greenback traded at 105.70 against a group of major currencies.</p><p><br /></p><p>The 10-year US treasury yield, which has previously supported the US dollar, also eased from a 16-year high.</p><p><br /></p><p>Market movements are expected to remain volatile as today is the last trade for September and the end of the third quarter which could contribute to increased volatility.</p><p><br /></p><p>The market is now awaiting the publication of US personal consumption expenditure (PCE) data, which is the main indicator of the Federal Reserve's (Fed) inflation choice tonight.</p><p><br /></p><p><br /></p><p>Following a strengthening US dollar and easing bond yields, the yen took advantage of the opportunity to recover from its 11-month lows.</p><p><br /></p><p>Even so, the ninja currency remains under pressure as investors continue to expect intervention from the Bank of Japan (BOJ).</p><p><br /></p><p>The euro continued its recovery to rise further from January lows against the US dollar even after being shown by Eurozone inflation data that fell in September.</p><p><br /></p><p>While the recovery of the pound is seen to be limited, with the price stuck at around 1.22400 against the US dollar.</p><p><br /></p><p>On the other hand, the Aussie and New Zealand dollars continued to rise further to trade stronger against the greenback.</p>