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USD Led Higher by Yields, Narrowing Gap With Bear Trigger in NZD/USD

FOREX
  • Greenback faring better headed through to the NY open, prompting new daily pullback lows across EUR/USD, GBP/USD. Moves prompted by the modest recovery in the US10y yield, which rises through the overnight highs to touch 4.2175%.
  • Most USD majors holding well within yesterday's ranges - the exception being NZD/USD, which is fast approaching yesterday's lows and first support at 0.5927. Slippage below here opens 0.5920 initially, but more importantly the cycle low and bear trigger printed on August 21st at 0.5897.
  • Fedspeak & US data fills the gap between now and the start of the Jackson Hole Symposium (which will see the full event schedule unveiled), with the latter taking place in Asia-Pac hours.
  • As we have flagged elsewhere, the bar seems relatively high when it comes to Fed Chair Powell providing a meaningful hawkish surprise during his Friday address (click for our full preview of the event: https://roar-assets-auto.rbl.ms/files/55455/FedJac... ).

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