US dollar slides alongside Treasury yields. The week to close out with a heavy data slate

The US dollar has given back earlier gains as Treasury yields turn lower. US 10-year yields rose as high as 4.01% early in New York trade but they’ve since fallen to 3.91%. That turn has weighed on the dollar and sapped earlier gains against the euro and yen.

USD/JPY remains up 125 pips on the day to 143.24 but had traded as high as 143.75.

It’s the start of a new year and I think flows are dominating. A return to 142.35 would get this pair back to where it was on Christmas Day as some of the illiquid moves are sorted out.

GBP/USD is the best performer today and hit a session high of 1.2676 a short time ago, but it comes after a rout yesterday. Again, this pair is now close to where it was the day before Christmas so I wouldn’t read too much into it.

The week closes out with a heavy data slate of US releases.

Thursday (all times Eastern):

1. 8:15 AM – ADP Employment Change (Dec)
2. 8:30 AM – Initial Claims (Dec 30 week)
3. 8:30 AM – Continuing Claims
4. 9:45 AM – S&P Global US Services PMI (Dec)

Friday:

1. 8:30 AM – Non-Farm Payrolls (Dec)
2. 8:30 AM – Unemployment Rate (Dec)
3. 8:30 AM – Average Hourly Earnings All Employees (Dec)
4. 8:30 AM – Goods & Services Trade Balance (Nov)
5. 10:00 AM – ISM – Services (Dec)
6. 10:00 AM – Factory Orders M/M (Nov)
7. 10:00 AM – Durable Goods Orders M/M (Nov)
8. 10:00 AM – Durable Goods Orders Ex-Trans M/M (Nov)

This article was written by Adam Button at http://www.forexlive.com.