The US dollar continues to slide against European currencies today, led by GBP, EUR and CHF.
That has all the hallmarks of a year-end flow-driven trade.
On the fundamental side, US 10-year yields are up 5 bnps today to 1.53%. A rise above 1.537% would be the highest in a month.
European rates are also rising with bunds up 4.7 bps today and gilts up 7 bps.
EUR/USD is 70 pips from the session lows and there’s an outside candle building but it’s all still within the December range. I wouldn’t try to read too much into market moves at this time of year. Watch carefully around the London fix.