Dollar keeps steadier so far on the session, market tones a bit more mixed

A bit of a mixed session in European morning trade thus far

The dollar is holding slight gains against the euro and pound, notably with EUR/USD starting to creep back towards 1.2100 with the key daily trendline resistance previously (now a key support level) seen @ 1.2108 on the daily.

For now, the 100-hour moving average @ 1.2097 is providing some near-term support as well but break below that and there might be room for sellers to roam towards 1.2070.

Meanwhile, GBP/USD is marked lower towards 1.3900 as sellers are breaching key near-term support levels @ 1.3912-14 at the moment. Hold below and the near-term bias turns more bearish with further swing region support seen closer to 1.3860-70.

Elsewhere in the market, European indices are holding mild gains while US futures are still keeping lower so far. S&P 500 futures are down 0.3%, Nasdaq futures are seen down 0.3% and Dow futures are down 0.2% currently.

Treasury yields are a touch higher but not much changed overall so far on the day. 10-year yields are up 1 bps to 1.645%, near similar levels to yesterday.

Looking ahead, US PCE deflator data will be one to watch in terms of event risk but also just be wary of month-end flows that could kick in as well.

Barclays and Citi models are predicting modest dollar selling into the month-end so let’s see how things play out before we get to the weekend.

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