The US dollar was battered right from the open today but in the last few hours it staged something of a bounce. It recovered around 60 pips against the euro and half of that in AUD/USD.

Now though, the dollar is coming back under pressure as long-dated US Treasury yields creep higher again. I wouldn’t say bonds are the trigger but the price action here is worrisome. Along the same lines, gold is now +$100 on the day again and on the brink of a new high after giving back $25 earlier.

There is a real and steady flow out of US dollars and USD assets at the moment. It’s a pure vote of non-confidence.

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