US dollar gives back a chunk of the early gains. Eyes on the 7-year sale

The US dollar jumped on stronger GDP and solid initial jobless claims but it’s slowly giving back those gains as equities strengthen. The S&P 500 is near a session high and up 0.9% while the Nasdaq is up 1.3%.

USD/JPY was the biggest mover on the economic data, rising a full cent but it’s since trimmed that to 38 pips.

The drop in the dollar has coincided with improving risk sentiment.

Looking to the top of the hour, the US is sell $49 billion in seven-year notes. Seven-year supply has been
generally well-received this year with five auctions stopping through, and two
tailing – although one of those tails was by just 0.3 bp

This article was written by Adam Button at www.forexlive.com.