Dollar Slips Lower For Now – Forex Signals | The dollar edged lower Tuesday, consolidating after recent gains as the safe haven rebounded from recent lows on the back of rising Treasury yields.

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Dollar Slips to New Lows

At 3:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.1% at 90.403, after rebounding for the last three sessions from a nearly three-year low seen during the previous week.

USD/JPY was down 0.1% at 104.14, EUR/USD rose 0.2% to 1.2169, after slipping to 1.2132 during the previous session for the first time since Dec. 21. GBP/USD climbed 0.4% to 1.3561, while the risk-sensitive AUD/USD was up 0.4% at 0.7729.

Dollar slips Aussie gains

Despite today’s losses, the tone surrounding the greenback has changed over the last few days as the prospect of fiscal stimulus and hints that the Federal Reserve may start tapering its bond purchases by the end of the year has driven U.S. Treasury yields higher.

FX Signal

U.S. President-elect Joe Biden takes office on Jan. 20 and has promised “trillions” in extra Covid-19 stimulus measures, largely funded by additional borrowing.

Forex Signals Dollar Heads Higher Sterling Slips

Morgan Stanley has now abandoned their weak-dollar call as a result of the shift in U.S. rates.

“We turn neutral on the USD amid rising U.S. fiscal stimulus odds and crowded USD sentiment,” the bank’s strategists said, in a research note, adding that they were now looking “for signals on when to turn bullish.”

Trading Signals

Traders will be keeping a wary eye on the release of the JOLTs job openings data for November, due out at 10 AM ET (1400 GMT), as it will provide a glimpse at what is happening in the labor market with respect to hiring, especially after Friday’s disappointing payrolls release.

Sterling slips in Brexit countdown

Also of interest will be a number of Federal Reserve speakers, starting with Atlanta Fed President Raphael Bostic.

Falling and Rising Wedges

Also scheduled to speak Tuesday are Governor Lael Brainard, Dallas Fed President Robert Kaplan, Cleveland Fed President Loretta Mester and, later, Kansas City’s Esther George.

Dollar Slips Lower For Now

Dollar Slips Lower For Now

Dollar Slips Lower For Now