Greenback trying to recover from the recent selling pressure

The US dollar was slightly higher on Wednesday, trying to erase some of the recent losses. The USDJPY pair was seen rising toward the 110 threshold again.

Us yields rose on Tuesday, with the 10-year yield settling above the 1.6% level, strengthening the USDJPY pair. However, the USDJPY pair is the only major pair where the trend isn’t bearish for the USD as everywhere else, the greenback is in a defensive mode. 

On Tuesday, The manufacturing ISM’s index increased to 61.2, up from last month’s 60.7, and above the 60.9 forecast. However, the prices paid subindex remained near record highs, implying continuing inflation pressures in the sector.

From other news, the Australian GDP slowed notably to 1.8% quarter-on-quarter, from 3.2% scored in the fourth quarter of 2020. The yearly change improved from -1% to 1.1%. The Aussie traded 0.3% lower after the data.

Elsewhere, gold and silver failed to hold yesterday’s gains and reversed during the US session, with the slight bearish pressure today. Since both the metals are way overbought, we might see a little correction here. 

US stock markets behaved similarly and yesterday’s gains are gone, with investors waiting for today’s Fed’s beige book to set direction.

Source: https://www.axiory.com/market-news/greenback-trying-to-recover-from-the-recent-selling-pressure