The Dollar started the shortened U.S. week on a softer footing, despite firmer Treasury yields, and decent incoming data. The DXY slipped to 89.66 lows after peaking at 89.92 overnight. The USD later reversed modestly higher in late morning, early afternoon trade. Prospects of rising U.S. deficit spending as far as the eye can see could be starting to creep into Dollar sentiment, while the Fed does not appear to be in any hurry to pull back on its uber-easy monetary policy.

The dollar’s weakening bias has remained in play, with the DXY USD index earlier pegging a six-day low at 89.72 while EUR-USD edged out a six-day high at 1.2241, despite the 10-year Treasury yield lifting back above 1.62%. USD-JPY, meanwhile, has recouped back above 109.50, and Cable has breached January highs on route to posting a 38-monht peak at 1.4247. USD-CAD has dropped back towards the six-year low that was seen in mid May at 1.2011. The greenback has also seen four- and six-day lows against the Australian and New Zealand dollars, respectively.

The dollar’s weakening bias has remained in play, with the DXY USD index earlier pegging a six-day low at 89.72 while EUR-USD edged out a six-day high at 1.2241, despite the 10-year Treasury yield lifting back above 1.62%. USD-JPY, meanwhile, has recouped back above 109.50, and Cable has breached January highs on route to posting a 38-monht peak at 1.4247. USD-CAD has dropped back towards the six-year low that was seen in mid May at 1.2011. The greenback has also seen four- and six-day lows against the Australian and New Zealand dollars, respectively.