FX Update: The dollar has rebounded from correction lows
FX Update: The dollar has rebounded from correction lows that were seen against many currencies yesterday. EUR-USD has cleared yesterday's and posted a two-day low at 1.1910, extending declines from yesterday's high at 1.1996. USD-JPY has lifted toward 110.00, returning focus to recent trend highs at 110.01-03. AUD-USD has fallen to a three-session low, at 0.7503, and USD-CAD to a three-session high, at 1.2822. The lift in the dollar has been concomitant with a rebound in U.S. Treasury yields, with the 10-year T-note yield rising back above 3.0%. Amid this, global stocks are presently taking a downward turn, with S&P 500 futures showing a 0.3% loss and most Asian markets are showing declines. The U.S. ambassador to China warned today that the U.S. and China are "still very far apart" on trade, technology and market access. Oil prices have also found renewed buoyancy on Mideast geopolitical concerns (fallout from U.S. opening its Israeli embassy in Jerusalem, pending U.S. sanctions on Iranian exports, uncertainty about whether the Iranian nuclear deal will survive without the U.S., and what consequences this may have). This backdrop, along with the Fed tightening course, should keep the dollar broadly underpinned.