USD is trading more defensively - Scotiabank

Analysts at Scotiabank explained that the USD is trading more defensively to start the week, reflecting stalled US yields around the 3% point for US 10Y bonds amid warnings from Bullard last week that the US yield curve might invert if the Fed kept pushing rates higher. 

Key Quotes:

"Mester, by contrast and who is a voter on the FOMC this year, remarked earlier today that the Fed might have to raise rates above 3%."

"The US and China eased trade war fears over the weekend as Pres. Trump offered to help Chinese telecoms maker ZTE while China restarted their review process of Qualcomm’s purchase of NXP Semiconductor."

"Asian equity market traded higher but European stocks have slipped while developed market fixed income has softened broadly."

"The pound is out-performing modestly on the day but gains appear largely technical, while the EUR neared 1.20 in earlier dealing before slipping off the highs."