The dollar erased Asia-session gains, even as Treasuries retreated, while front-end volatility came under pressure after the London open amid diplomatic coordination to try to prevent the Israel-Hamas conflict from spreading.
Treasury yields rebound and e-minis reverse earlier losses; the Bloomberg Dollar Spot Index drops 0.1% while US 10-year yield climbs six basis points to 4.98%, following a drop of eight basis points on Friday.
Leveraged funds boosted bullish bets on the dollar while asset managers trimmed dollar shorts, based on the latest data from the Commodity Futures Trading Commission as of Oct. 17.
One-week implied volatility in EUR/USD snaps a three-day advance to trade modestly lower at 7.76% as investors dial back hedges on geopolitical risks.
USD/CHF rises as much as 0.4% to 0.8957, highest since Oct. 19, before losing traction.
USD/JPY little changed at 149.88 after rising above 150 for the first time since Oct. 3; speculation that the Bank of Japan will make some kind of policy move this month continues to build with the weak yen.
Source : Bloomberg
