There is a mildly positive tone to risk appetite today through major markets, but it is also interesting to see the dollar also holding strength. With Treasury yields ticking higher and a “bull steepening” on the yield curve developing (longer dated yields rising faster than shorter dated), the dollar is beginning to look primed for recovery. Although it had roots in extremely oversold positioning and a better than expected payrolls report on Friday, there does not seem to be too much to drive which is driving the move today. Notably the tit-for-tat deterioration in diplomatic relations between the US and China ... (full story)