Despite the bounce in US futures, equities sentiment is failing to really convince in European trading so far. Regional indices are now holding more mixed after a positive open with gains trimmed across the board.
This comes as European bond yields are continuing to tick higher, building from the hawkish overtones from the ECB yesterday. German 5-year bund yields briefly turned positive for the first time since 2018 earlier. Meanwhile, we are seeing more aggressive pricing in terms of rate hikes for the ECB as well this morning.
That is all helping to prop up the euro with EUR/USD holding around 1.1450-60 levels at the moment. The pair is keeping above its 100-day moving average @ 1.1428 with further resistance seen at the January high of 1.1483.
Elsewhere, commodity currencies are largely struggling as the dollar keeps firmer. USD/CAD is up 0.3% to 1.2710 and AUD/USD down 0.5% to 0.7106 with the latter testing key near-term levels now: