The Dollar was a bit softer in N.Y. trade on Tuesday, though was rangebound for the most part. An early drop in Treasury yields, reportedly the result of a large short position being unwound, saw the 10-year yield drop to near 1.51% from 1.57%, which weighed on the USD. The timing coincided with the release of the narrowed U.S. April trade deficit. We look for some FX consolidation to set in for now, as traders remain sidelined ahead of the ECB meeting, and the U.S. May CPI report, both on Thursday. The U.S.

The dollar has traded firmer today, reversing half or more than half of the declines seen yesterday versus its major peer currencies. This comes amid a cautious tone in global asset markets. Stock markets have stalled after the MSCI All Country World index scaled to a new record high yesterday. Oil prices and other industrial commodities are softer. Regarding the U.S. economy, the markets are continuing to digest the disappointing rise in May nonfarm payrolls amid a backdrop of a robust recovery, albeit with headwinds. The upshot is that Fed tapering worries have been pushed back somewhat.

The dollar has traded moderately firmer today, reversing half or more than half of the declines seen yesterday versus its major peer currencies. This comes amid a cautious tone in global asset markets. Stock markets have stalled after the MSCI All Country World index scaled to a new record high yesterday. Oil prices and other industrial commodities are softer. Regarding the U.S. economy, the markets are continuing to digest the disappointing rise in May nonfarm payrolls amid a backdrop of a robust recovery, albeit with headwinds.