In the currency market, the dollar pulled back against a basket of currencies to trade at 101.26, after falling to 100.64 in the Monday session. That was down from levels near 102.00 in the previous week.
The slip in the dollar saw other major currencies trade higher; the Australian dollar was at $0.7488, up from levels below $0.7400 last week and buoyed by higher metal prices. The euro was at $1.0609, climbing from below $1.055, while the pound traded at $1.2400.
The Chinese yuan also strengthened to 6.8916 against the dollar, after hovering near 6.9200 last week.
Treasurys also rose in the U.S. on Monday, with the two-year note yield dropping to 1.107 percent, while the benchmark 10-year yield traded lower at 2.314 percent.
The pull-back across asset classes could suggest market watchers’ enthusiasm for the Trump administration was waning.
Stephen Innes, a senior trader at OANDA, said in a note that traders were not rushing back to “reinstate long dollar just yet” and were waiting for noteworthy U.S. fiscal stimulus clues from the new Trump administration, while hedging fall-out risk from the upcoming Italian referendum.
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