European morning trade has unfolded relatively straightforward, marked by a prevailing sentiment among traders favouring the sale of the dollar and embracing a broad buy-everything-else approach. The primary impetus behind this trend remains the Federal Reserve’s recent dovish stance, with the market awaiting a blend of updates from the Bank of England (BOE) and the European Central Bank (ECB) later in the session. Concurrently, the dollar’s challenges are compounded by a further decline in Treasury yields, with 10-year yields dipping below 3.95%.

The prospect of a more dovish stance from both the BOE and ECB could serve as additional catalysts propelling gains in the Japanese yen and contributing to a broader decline in global bond yields. Returning to the dollar’s performance, the EUR/USD pair is currently up 0.5% at 1.0925, while the GBP/USD pair has gained 0.4% to reach 1.2675 for the day. The buoyancy in European equities is driving positive momentum, benefiting commodity currencies as well, with the AUD/USD pair up 0.9% at 0.6715 and the NZD/USD pair up 0.7% at 0.6215.