USD Resumes the Retreat As Traders Come Back

It seems that European traders returning from the Easter break are feeling optimistic once again, as the liquidity gets back to normal. Although, there is some important US data that is set to be released later in the week so there is still a sense of caution.

Equities initially started the session with some optimism but gains have slowly been pared back. US futures are also little changed at this point. European bond yields are holding higher as they try to catch up to Treasury yields, which saw a jump after the US jobs report on Friday. However, Treasury yields are not doing much today, having held lower earlier in the session.

In the foreign exchange market, the dollar has retraced its post-NFP gains. EUR/USD climbed back above 1.0900, and GBP/USD also pushed back above 1.2400 during the session. USD/JPY is down slightly by 0.3% to 133.25 but off the lows close to 133.00 from earlier in the day. Commodity currencies were more mixed, with the USD/CAD pair remaining flat around 1.3500 and NZD/USD down slightly by 0.1% to 0.6210 as the kiwi continues to struggle somewhat since the drop last Thursday.

In other markets, Gold has climbed above the $2,000 level as traders continue to remain uncertain on the USD overall. Bitcoin has also started climbing again and has moved back above $30,000 for the first time since June last year. We opened a buy GOLD signal earlier today, while our BTC signal hit the take profit level last night as the surge started.