The pound continues its good form after the breakout overnight
Markets are steadily grinding towards the end of the week with the dollar holding slightly weaker against European currencies as well as the yen today.
EUR/USD trades within a 20 pips range still but is near the upper extreme ahead of European trading while the pound is continuing its run higher after cable broke above key resistance levels around the 1.2500 handle in overnight trading.
The yen is holding firmer amid weaker Treasury yields, with 10-year yields down by ~2 bps to 1.765% currently. Equities are looking more flat so overall risk sentiment remains more measured in my view.
Just be reminded that the yen and franc both gained yesterday after respective central banks left monetary policy unchanged so the "bend until it breaks" play is still part and parcel of what's weighing into sentiment currently.
Other major currencies aren't really doing much as they trade mixed against the dollar, which in itself is a bit sluggish ever since the FOMC meeting.
Markets are still in search for fresh direction and there's still no clear lead as to what that may be with equities erasing overnight gains on faltering trade optimism while the bonds stay fixated on the repo/funding issue - something I will post about in the next hour.