The Fed minutes yesterday outlined more of the same from the FOMC meeting statement roughly three weeks ago, that is the central bank is starting to look to consider a slower pace of rate hikes moving forward. That is enough to keep broader market sentiment more upbeat yesterday and weighed on the dollar as well.
The mood is carrying over to today with bonds staying more bid so far in Europe. Trading in Treasuries may be closed but looking to regional bonds, we can see 10-year German bund yields being down by over 9 bps currently to its lowest levels in seven weeks:
In turn, that is continuing to weigh on the mood in USD/JPY as the pair falls to fresh lows on the day of 138.10. The pressure continues to stay on the dollar as such, with the greenback now holding slightly lower across the board as well. But USD/JPY is the big mover so far today, down over 1% at the moment as sellers look to try and test the support levels outlined here.
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